President Donald Trump could announce his reciprocal tariff plan Thursday before he meets with Indian Prime Minister Narendra Modi, the White House said Wednesday.
“I do believe it will come before the prime minister’s visit tomorrow,” White House press secretary Karoline Leavitt said. “I will let the president discuss the details on the reciprocal tariff front, but this is something he believes strongly in.”
Trump said Sunday that he planned to put reciprocal tariffs on every country that imposes import taxes on the U.S.
The president has outlined big plans for his tariff program, telling Americans during his inauguration address that tariffs would make the U.S. “rich as hell” and shift the tax burden away from Americans and onto foreign countries. Tariffs are taxes on imported goods paid by the companies that import them. Those taxes are often passed on to consumers.
The Committee for a Responsible Federal Budget estimated Trump’s tariffs could bring in revenue, but likely not enough to cover his spending plans, which could cost up to $11 trillion.
CRFB estimated Trump’s tariffs on China, Mexico and Canada could raise $1.3 trillion through fiscal year 2035 on a conventional basis. Accounting for economic effects, CRFB estimated the combined tariffs (both the enacted and delayed) would raise $1.3 trillion through 2035.
John Paulson, founder of Paulson & Co. and a Trump campaign adviser, previously estimated Trump’s tariffs could bring in $450 billion in revenue a year.
“The United States will be conducting trade with all countries based on the principle of fairness and reciprocity,” Trump said last week.
The president said that chronic trade deficits undermine the U.S. economy.
On Feb. 1, Trump hit Mexico and Canada with 25% tariffs and levied an additional 10% tariff on China. Two days later, Trump suspended tariffs on the U.S. neighbors for 30 days after reaching preliminary deals with both Mexico and Canada. The leaders of both neighboring countries promised to strengthen border security. China responded with limited tariffs on U.S. goods and filed a complaint about Trump’s unilateral trade move with the World Trade Organization.
This week, Trump announced plans to impose 25% tariffs on steel and aluminum imports.
