After Canada, Mexico and China, Trump threats of reciprocal tariffs to other countries

The move aligns with Trump’s campaign promise to impose tariffs matching the rates foreign countries place on US exports. He made the announcement during a meeting with Japanese Prime Minister Shigeru Ishiba, adding that auto tariffs were still under consideration.

As per the report by Reuters, Trump informed Republican lawmakers of his plans during budget discussions at the White House on Thursday. His administration sees higher tariffs on foreign imports as a way to help fund extensions of the 2017 tax cuts, which independent analysts warn could significantly increase US debt.

Tariffs currently account for about 2% of annual US revenue, but Trump’s team believes increasing them could offset some costs.

On Saturday, Trump announced 25% tariffs on Canada and Mexico but later delayed them after negative market reactions. The two countries instead agreed to enhanced border enforcement, a key Trump priority.