Reciprocal Trade

Extracted Attributes

• Criticism

  Tariffs often exceeded those imposed by other nations; applied even to countries with U.S. trade surplus; formula for calculation was overly simplistic and unrelated to actual trade barriers

• Definition

  A trade strategy involving imposing tariffs that mirror or counteract trade barriers faced by exports, or agreements between nations to reduce tariffs on traded goods mutually.

• Historical Legislation

  Reciprocal Trade Agreements Act of 1934, Reciprocal Trade Act of 1936

• Key Proponent (Modern)

  Donald Trump

• Key Proponent (Historical)

  Franklin D. Roosevelt

• Goal (Trump Administration)

  Rectify trade practices, reduce U.S. goods trade deficits, provide political leverage

• Impact of 'Liberation Day' tariffs

  Global market crash

• Primary Target (Trump Administration)

  China

• Associated Policy (Trump Administration)

  Liberation Day tariffs (Executive Order 14257)

• Legal Basis Invoked (Trump Administration)

  International Emergency Economic Powers Act (IEEPA)

Timeline

• The earliest reciprocal trade agreement between the United States and Canada was established, allowing mutual access to fishing grounds and trade without taxation. (Source: Web Search)

  1854-XX-XX

• The earliest reciprocal trade agreement between the U.S. and Canada was repealed due to opposition from U.S. farmers. (Source: Web Search)

  1866-XX-XX

• President Franklin D. Roosevelt signed the Reciprocal Trade Agreements Act (RTAA) into law, empowering the president to negotiate bilateral, reciprocal trade agreements. (Source: Web Search)

  1934-XX-XX

• The United States sought to revitalize trade relationships through the Reciprocal Trade Act, aiming to lower tariffs and promote fair trade practices. (Source: Web Search)

  1936-XX-XX

• U.S. President Donald Trump announced a broad package of import duties, dubbed "Liberation Day" tariffs, by signing Executive Order 14257. (Source: Summary, Wikipedia)

  2025-04-02

• A 10% baseline tariff on imports from nearly all countries began as part of the "Liberation Day" tariffs. (Source: Wikipedia)

  2025-04-05

• Country-specific tariff rates were scheduled to begin but were suspended to allow time for negotiation following a global market crash. (Source: Wikipedia)

  2025-04-09

• The United States Court of International Trade ruled that Trump had overstepped his authority in imposing tariffs under the IEEPA and ordered the "Liberation Day" tariffs to be vacated. (Source: Summary, Wikipedia)

  2025-05-28

• Trump announced deals with 8 trading partners (UK, Vietnam, Philippines, Indonesia, Japan, South Korea, EU) and a truce with China; oral arguments for the appeal of the court ruling were scheduled. (Source: Summary, Wikipedia)

  2025-07-31

• Country-specific "reciprocal" tariffs were ordered to resume. (Source: Wikipedia)

  2025-08-07

• The truce with China, established by July 31, expired. (Source: Summary, Wikipedia)

  2025-08-12

• The Federal Circuit Court of Appeals ruled that Trump had exceeded his authority under the IEEPA, but stayed its decision to allow for a potential appeal to the U.S. Supreme Court. (Source: Summary, Wikipedia)

  2025-08-29

Liberation Day tariffs

The Liberation Day tariffs are a broad package of import duties announced by U.S. President Donald Trump on April 2, 2025—a date he called "Liberation Day". In a White House Rose Garden ceremony, Trump signed Executive Order 14257, Regulating Imports With a Reciprocal Tariff to Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits. This order declared a national emergency over the United States' trade deficit and invoked the International Emergency Economic Powers Act (IEEPA) to authorize sweeping tariffs on foreign imports. Trump also signed Executive Order 14256, Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China as Applied to Low-Value Imports, which closed the de minimis exemption for China, further escalating the China–United States trade war. Executive Order 14257 imposed a 10% baseline tariff on imports from nearly all countries beginning April 5, with country-specific tariff rates scheduled to begin April 9. The Trump administration called these measures "reciprocal", asserting they mirrored and counteracted trade barriers faced by U.S. exports. Trade analysts rejected this characterization, noting that the tariffs often exceeded those imposed by foreign countries and included countries with which the U.S. had a trade surplus. Economists argued that the formula used to calculate the "reciprocal" tariffs was overly simplistic with little relation to trade barriers. The "Liberation Day" tariff announcement led to a global market crash. In response, the White House suspended the April 9 tariff increases to allow time for negotiation. By July 31, Trump had announced deals with just 8 trading partners: the UK, Vietnam, the Philippines, Indonesia, Japan, South Korea, the EU, and a truce expiring August 12 with China. He ordered country-specific "reciprocal" tariffs to resume on August 7, 2025. On May 28, 2025, the United States Court of International Trade ruled in a lawsuit that Trump had overstepped his authority in imposing tariffs under the IEEPA and ordered that the "Liberation Day" tariffs be vacated. The United States Court of Appeals for the Federal Circuit issued a stay while it considered the administration's appeal, allowing the tariffs to remain in effect. Oral arguments were scheduled for July 31, 2025. On August 29, the Federal Circuit Court of Appeals ruled that Trump had exceeded his authority under the IEEPA, but stayed its decision to give the administration time to appeal to the U.S. Supreme Court.

Web Search Results

• Reciprocal Trade Act | Research Starters

  The Reciprocal Trade Act refers to agreements between nations that aim to reduce tariffs on traded goods, thereby facilitating easier trade. Notably, the earliest reciprocal trade agreement between the United States and Canada was established in 1854, allowing mutual access to rich fishing grounds and trade in various goods without taxation. However, the agreement faced challenges, particularly from U.S. farmers who opposed the influx of Canadian grain, leading to its repeal in 1866. Subsequent [...] A reciprocal trade agreement between two nations provides for both countries to reduce tariffs on trade goods. Such agreements between the United States and Canada date to 1854. British diplomats had begun negotiations with the U.S. government two years earlier, but they were unable to reach a conclusion at the time because of a dispute over fishing rights off the eastern coast of Canada. Negotiations continued until the fisheries dispute was resolved and a reciprocity treaty was signed on June [...] In the 1930s, under President Franklin D. Roosevelt, the United States sought to revitalize trade relationships through the Reciprocal Trade Act of 1936, which aimed to lower tariffs and promote fair trade practices. While this act produced fewer reductions than earlier agreements, it did result in increased trade between the two nations. Over time, however, both high tariffs and free trade policies ultimately increased Canada’s economic dependence on the U.S. The Reciprocal Trade Act remained

• A Positive Vision for Reciprocal Trade

  President Donald Trump recently issued a memorandum outlining a plan for “reciprocal trade and tariffs,” in which U.S. trade agencies and officials would assess the tariffs and trade barriers of other countries and adjust U.S. tariffs to match what the memo presumes to be the higher tariffs and barriers of those countries. Specifically, the idea is to “counter non-reciprocal trading arrangements with trading partners by determining the equivalent of a reciprocal tariff with respect to each [...] ## Reciprocity Through Trade Agreements At the core of Trump’s concern with reciprocity is the U.S. trade deficit, which is mentioned several times in the memo. At one point, it states: “By making trade more reciprocal and balanced, we can reduce the trade deficit.” But trade deficits are primarily driven by macroeconomic factors rather than tariffs and other trade restrictions, and using these deficits as a reason for pushing reciprocity is misguided. [...] This publication was produced on behalf of Rice University’s Baker Institute for Public Policy. Wherever feasible, the material was reviewed by external experts prior to its release. Any errors are the responsibility of the author(s) alone.

• Reciprocal Tariff Act - Wikipedia

  ## Reciprocal Tariff Act of 1934 [edit] President Franklin D. Roosevelt signed the Reciprocal Trade Agreements Act (RTAA) into law in 1934. It gave the president power to negotiate bilateral, reciprocal trade agreements with other countries and enabled Roosevelt to liberalize American trade policy around the globe. It is widely credited with ushering in the era of liberal trade policy that persisted throughout the 20th century. [...] Reciprocity "Reciprocity (international relations)") was an important tenet of the trade agreements brokered under RTAA because it gave Congress an incentive to lower tariffs. As more foreign countries entered into bilateral tariff reduction deals with the United States, exporters had more incentive to lobby Congress for even lower tariffs across many industries.

• Donald Trump Wants Reciprocity in Trade: Here's a Closer Look

  Reciprocity has been the foundation of U.S. participation in global trade negotiations since the 1930s. In 1934—chastised in part by the disaster of the 1930 Smoot-Hawley tariff increases, when other countries raised their own tariffs to retaliate against the United States—Congress empowered President Franklin D. Roosevelt to negotiate “reciprocal” tariff reductions with other countries. The 1934 Reciprocal Trade Agreements Act (RTAA) led to the negotiation of nearly two dozen agreements over

• What is Reciprocal Tariff? Definition ...

  A reciprocal tariff is a tax or trade restriction that one country places on another in response to similar actions taken by that country. The idea behind reciprocal tariffs is to create balance in trade between nations. If one country raises tariffs on goods from another, the affected country might respond by imposing its own tariffs on imports from the first country. This response is meant to protect local businesses, preserve jobs, and fix trade imbalances. [...] Reciprocal tariffs refer to the practice of imposing tariffs on imports from other countries at a rate that matches the tariffs those countries impose on imports from the country imposing the reciprocal tariff. Key points regarding reciprocal tariffs include: 1. Balancing Trade Relationships: Reciprocal tariffs aim to promote fair trade practices by ensuring that countries do not face unfair advantages or disadvantages in terms of tariffs applied to their goods in different markets. [...] ### History of Reciprocal Tariff The concept of reciprocal tariff policies started in the 19th century when countries began using tariffs to shield their local industries and boost economic development. Reciprocal tariffs, or reciprocal trade agreements, involve nations agreeing to lower or remove tariffs on goods in a mutual way.