US Pres. Trump: Today is the big one: reciprocal tariffs

Source Fxstreet

In a recently shared social media post, US President Donald Trump pointed to an announcement of reciprocal tariffs.

"Three great weeks, perhaps the best ever, but today is the big one: reciprocal tariffs!!! Make America great again!!!," Trump said on Truth Social.

Market reaction

The US Dollar Index recovered from session lows with the immediate reaction. At the time of press, the index was down 0.15% on the day near 108.00.

Tariffs FAQs

Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.

Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.

There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.

During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold Price Forecast: Oil Price Breaking $100 Fuels Inflation Concerns, Will Gold Prices Fall Further?As of the Asian session on July 24, gold prices ( XAUUSD) fell continuously during intraday trading, briefly approaching the $4,000 mark. Looking at the chart, gold prices rebounded this
Author  TradingKey
13 hours ago
As of the Asian session on July 24, gold prices ( XAUUSD) fell continuously during intraday trading, briefly approaching the $4,000 mark. Looking at the chart, gold prices rebounded this
placeholder
Crude Oil Price Forecast: Middle East Tensions Push Up Oil Prices, Can They Still Rise After Breaking $100? Affected by the continuous escalation of geopolitical tensions in the Middle East, Brent crude ( UKOIL) broke back above the psychological $100-per-barrel threshold after two months, as m
Author  TradingKey
13 hours ago
Affected by the continuous escalation of geopolitical tensions in the Middle East, Brent crude ( UKOIL) broke back above the psychological $100-per-barrel threshold after two months, as m
placeholder
Today’s Market Recap: Oil Breaks $100, Fueling Inflation Fears, as AI Capex Faces Scrutiny and Tesla’s 14% Plunge Drags Down Tech SectorTracking the Market TrendTradingKey - The market was hit by a double whammy of soaring oil prices and doubts about the return on AI investments sparked by increased capital expenditures at Google(GOOG
Author  TradingKey
21 hours ago
Tracking the Market TrendTradingKey - The market was hit by a double whammy of soaring oil prices and doubts about the return on AI investments sparked by increased capital expenditures at Google(GOOG
placeholder
WTI Crude Breaks $90, Brent Crude Approaches $100, Middle East Shipping Risks Drive Continuous Rise in Oil Prices On July 23, international oil prices continued to rise sharply. WTI crude oil ( USOIL) prices broke through the $90 mark intraday, rising over 4%, while Brent crude oil ( UKOIL) rose to a
Author  TradingKey
Yesterday 10: 09
On July 23, international oil prices continued to rise sharply. WTI crude oil ( USOIL) prices broke through the $90 mark intraday, rising over 4%, while Brent crude oil ( UKOIL) rose to a
placeholder
WTI climbs above $87.00 as Middle East conflict threatens key choke pointsWest Texas Intermediate (WTI) oil price extends gains for the fifth consecutive day, trading around $87.30 per barrel during the Asian hours on Thursday. Crude oil prices surged as escalating Middle East tensions stoked fears of widespread supply disruptions.
Author  FXStreet
Yesterday 01: 15
West Texas Intermediate (WTI) oil price extends gains for the fifth consecutive day, trading around $87.30 per barrel during the Asian hours on Thursday. Crude oil prices surged as escalating Middle East tensions stoked fears of widespread supply disruptions.
goTop
quote