U.S. President Donald Trump has directed his economic team to devise a plan for reciprocal tariffs on countries that impose duties on American imports. The move, announced on Thursday, signals a potential escalation in global trade tensions as the administration seeks to counteract what it views as unfair trade practices.

Trump stated that the new tariff system would ensure that the U.S. matches the duties imposed by its trading partners. "No more, no less," he emphasized during an Oval Office briefing. The directive stops short of immediately imposing new tariffs, instead initiating a comprehensive review of foreign trade barriers, including non-tariff restrictions like vehicle safety standards and value-added taxes.

Countries targeted in the study include China, Japan, South Korea, and the European Union. The administration aims to assess the highest tariff rates and largest trade surpluses before determining appropriate countermeasures. Commerce Secretary nominee Howard Lutnick announced that the findings will be completed by April 1, aligning with Trump's earlier directives to address trade imbalances.

While the study raised concerns of a potential global trade war, Wall Street reacted positively to the measured approach, with stocks gaining and U.S. Treasury yields declining. Experts believe Trump's strategy may serve as leverage in trade negotiations, encouraging foreign partners to lower their tariffs.

Trump has already enacted tariffs on steel, aluminum, and select Chinese goods and has indicated further tariffs on automobiles, semiconductors, and pharmaceuticals. The White House stressed that while reciprocal tariffs are being explored, the administration remains open to discussions with trading partners to achieve fairer trade policies.

Economists caution that implementing the proposed tariffs presents legal and logistical challenges. Trump could invoke various trade laws, including the Trade Act of 1974 and the Tariff Act of 1930, to justify the measures. However, some statutes have never been used before, adding uncertainty to the process.

As global markets react, experts warn that the move could heighten inflationary pressures in the U.S. and strain international trade relations. Nonetheless, Trump defended the strategy, asserting that short-term price increases would be offset by long-term economic benefits.

The administration’s next steps will be closely monitored as the deadline for the trade study approaches, with businesses and global leaders bracing for potential policy shifts.