The goal of reciprocal tariffs is to promote balanced trade between nations by offering bilateral low tariff agreements or using high tariffs as a countermeasure against disproportionate rates. Definition: A reciprocal tariff is a type of border tax (tariff) that a country imposes when its trading partner imposes high tariffs on its exports. Its purpose is to establish equality and maintain balance in trade. What is a reciprocal tariff? Trump's approach to "reciprocal" trade is a tit-for-tat strategy to rectify trade imbalances by imposing higher tariffs. What are reciprocal tariffs? Reciprocal tariffs refer to tariffs—the taxes charged on imported goods—the U.S. government plans to levy against global trading partners that are equal to the ...
