Investing.com -- President Donald Trump is preparing to announce reciprocal tariffs as early as Friday, fulfilling a campaign promise to impose duties on U.S. imports that match the rates imposed by trading partners, three sources familiar with the plan told Reuters.
According to the report, Trump revealed his intentions during budget discussions with Republican lawmakers at the White House on Thursday. However, details of the proposal are said to remain unclear, including which countries would be affected by the new tariffs.
Trump and his top aides have reportedly suggested that the revenue from these tariffs could help offset the cost of extending his 2017 tax cuts, though the impact on the federal budget is expected to be limited.
Tariffs have historically contributed only about 2% of annual U.S. government revenues, said Reuters, adding that the White House has not yet commented.
The announcement follows Trump’s recent move to impose 25% tariffs on Canada and Mexico, which were subsequently delayed. The two U.S. trading partners agreed to enhance border enforcement efforts, a key priority for Trump.
Following the Reuters report of Trump’s discussion with lawmakers, Wall Street extended losses on Friday as investors reacted to the prospect of increased trade tensions.