In the fourth week of the second Trump administration, businesses awaited the details of what a reciprocal tariff approach could be -- and how fast the tariff schedule could be altered to have a different rate for every product that the U.S. exports to countries at a higher rate than the U.S. most-favored nation rate.
President Donald Trump, speaking to reporters on Air Force 1 on Feb. 9, said he will impose 25% tariffs on steel and aluminum from all countries. Most countries' aluminum is currently subject to 10% tariffs, with Canada and Mexico exempted from Section 232 steel and aluminum duties. He did not say when the tariff changes would take effect.
Even as President Donald Trump talked about his intention to announce tariff changes next week, he expressed confidence that Japan might be spared, because of their promises to buy more American exports.
President Donald Trump, speaking to reporters during a Feb. 7 press conference with Japan's Prime Minister, said that he would probably announce, either Monday or Tuesday, Feb. 10 or Feb. 11, "reciprocal tariffs where a country pays so much or charges us so much and we do the same, so very reciprocal because I think that's the only fair way to do it, that way nobody's hurt. They charge us, we charge them."
The nominee to lead the Office of the U.S. Trade Representative, Jamieson Greer, told New Mexico Democrat Sen. Ben Lujan that, as he starts a sunset review of USMCA, he thinks rules of origin should be tightened up in some sectors.
Freshman Rep. Riley Moore, R-W.Va., introduced a bill called the U.S. Reciprocal Trade Act with eight other House Republicans, a proposal first introduced by former Rep. Sean Duffy, R-Wis., in 2019 (see 1901160012) along with a Senate companion bill by Sen. Lindsey Graham, R-S.C., and former Sen. Joe Manchin of West Virginia (see 1908090034).
On his first day in office, the president directed the heads of agencies that deal with trade, tariff collection and trade remedies to:
A discussion draft modifying a carbon border tax bill narrows the product list, removing fossil fuels, chemicals and other goods that were original targets of the Senate bill, which was introduced a year ago (see 2311030006).
Sen. James Lankford, R-Okla., told a think tank audience that the U.S. needs to negotiate and Congress needs to ratify new broad trade agreements, so that the U.S. can develop long-term sources of processed minerals needed for electrification.
Barely more than half of the pharmaceuticals' value consumed in the U.S. is domestically produced, but re-shoring is not the answer to vulnerabilities in the supply chains for drugs or medical equipment, panelists said at a think tank event.