Trade Cases

February 13, 2018
Does ‘Reciprocal Tax’ Give Trump Wiggle Room on 232?
Written by Tim Triplett
Does President Trump’s call for a “reciprocal tax” on imports from countries that impose higher tariffs than the U.S. give him cover for the dilemma he faces over Section 232?
Speaking at a White House meeting with state officials and local executives on Monday to discuss his infrastructure plan, the president offered up some unexpected comments on trade. Pointing to the trade deficits with Mexico and Canada and the contentious negotiations over the North American Free Trade Agreement, Trump said, “They will either treat us right or we will have to do business differently. We cannot continue to be taken advantage of by other countries. We cannot let people continue to come into our country and rob us blind and charge us tremendous tariffs and taxes and we charge them nothing.” The solution he proposed, while offering no detail, is a “reciprocal tax,” which will be “a big part of what is happening over the next month.”


