SEAToday.com, Jakarta - US President Donald Trump introduces new tariffs on nations that impose duties on U.S.-made products within weeks to establish a “reciprocal” trade system.  

Until now, no specific tariffs were announced, leading to a relief rally on Wall Street. However, Trump has signed a memorandum directing officials to devise a strategy to address “longstanding imbalances” in global trade.

Trump acknowledged that higher tariffs on foreign goods could cause temporary disruptions, conceding that prices might rise in the short term but assuring that costs would eventually decline.

The U.S. Department of Commerce, now headed by billionaire Howard Lutnick, will carry out studies and present their findings to the president in early April. Trump indicated that there would be no exemptions to the “reciprocal” tariffs introduced as part of the new plan.

This initiative was Trump’s latest effort to pressure both allies and adversaries into making economic concessions. A White House press release pledged to prioritize American workers, boost competitiveness, reduce the trade deficit, and reinforce economic and national security.

U.S. officials had highlighted various trade barriers as evidence of unfair treatment, highlighting the European Union’s 10% tariff on cars—compared to the U.S.’s 2.5%—and restrictions on U.S. shellfish exports, while the EU faces no such limitations in the American market.

While the president and his supporters argue that increasing import taxes will contribute to "making America great again," they also assert that the mere threat of higher tariffs from the world’s largest economy can compel other nations to conform to Trump’s demands.

When questioned about rising consumer prices, Lutnick sought to shift responsibility onto other countries. “If they drop their tariffs, prices for Americans are going down,” he said as quoted on The Guardian.

Trump had frequently highlighted the US’s trade deficit with the world—where imports outweigh exports—as evidence of an unfair global trade system, reinforcing his push for tougher tariffs.

Author: Andi Raisa Malaha Thambas