In starting a process to impose reciprocal tariffs on American trading partners, the White House is sowing uncertainty and risking inflation.

Here’s what you need to know about reciprocal tariffs and who might be impacted by Trump’s plan. 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 existing tariffs foreign countries have set against American goods.

President Trump announced the United States will be implementing reciprocal tariffs against foreign trading partners. “I’ve decided for purposes of fairness that I will charge a reciprocal tariff,” the commander in chief said earlier this week in a press conference.

The president said his advisers would devise new tariff levels reflecting countries’ tariffs, taxes, subsidies and other policies affecting trade with the United States.

U.S. President Donald Trump said on Tuesday he intends to impose auto tariffs "in the neighborhood of 25%" and similar duties on semiconductors and pharmaceutical imports, the latest in a series of measures threatening to upend international trade.

TRUMP'S TREASURY SECRETARY SHUTS DOWN ANY TARIFF CONCERNS, PRAISES ‘FRICTIONLESS GLOBAL TRADE’ Trump has been busy pursuing other tariffs since taking office as well. He inked

US President Donald Trump has announced a new trade policy under which the United States will impose tariffs that match those of other countries. According to Trump, the US will charge a reciprocal tariff based on what other nations charge America—no more,