Reciprocal tariffs: Regulating Imports with a Reciprocal Tariff

Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits A reciprocal tariff is a tax or trade limit that one country imposes on another as a reaction to similar measures from that country. The purpose of reciprocal tariffs is to maintain fairness in trade between countries. The US Supreme Court will decide if President Trump exceeded powers under the IEEPA in imposing reciprocal tariffs . The case could impact trade deals with India, the EU, Japan, and others, affecting global trade dynamics. RECIPROCAL TARIFFS A reciprocal tariff is a trade measure under which a country imposes tariffs on imports from another country at the same rate that the latter applies to its exports. The primary objective of adopting reciprocal tariffs is to establish parity in trade relations by matching the tariff rates imposed on its own exports.