Trump Signs Order for ‘Mutual Tariffs’ on US Trade Partners – Launching Economic Uncertainty

President Trump signed an executive order tonight to impose mutual tariffs against both allies and adversaries of the US, aiming to balance trade inequalities. The tariffs initiated through executive action on Thursday (13.02.2025) will not take effect immediately, giving nations time to negotiate potentially new trade terms with the US, a White House official stated. “If they impose tariffs or taxes on our products, we will impose exactly the same tariffs or taxes on their imported goods,” Trump said, adding that often “US allies behave worse than our enemies” in trade matters. Speaking to reporters in the Oval Office, Trump mentioned that other countries could reduce or even eliminate their tariffs. A tax such as VAT imposed by some countries will also be considered a tariff, and sending goods through a third country to avoid tariffs will not be accepted, he added. Referring to the European Union, Trump noted its 20% VAT and other measures affecting American companies like Apple. He also supported the idea of helping US airlines with aviation fees. When asked if consumers should expect price increases, he replied “not necessarily.” However, he then suggested prices “might increase somewhat in the short term,” while expressing confidence that jobs would increase and interest rates would decrease. Commerce Secretary Harwood Lutnick said each country’s case will be examined separately, with the study expected to be completed by April 1st. Trump emphasized that tariffs for many countries will remain the same as today’s, warning there would be “no exceptions.” A White House official told Reuters that the US hopes to discuss the matter with affected countries, and Trump would happily reduce tariffs if other countries do the same.