US President Donald Trump issued a presidential letter on reciprocal tariffs, which gave his administration time to look into the proposal. As a result of the ruling, international markets went into a risk-on mindset. Trump ordered the US Trade Representative and Commerce Secretary to look into the reciprocal tariffs on Thursday.
The probe will look into non-tariff obstacles like exchange rates, value-added taxes (VAT), unjust subsidies, and tariffs imposed by other countries on US imports. Commerce Department chief Howard Lutnick stated that the investigation should be finished by April 1st, allowing the White House to take prompt action. After imposing a 25% tax on steel and aluminium and an additional 10% on aluminium, the sweeping tariffs are expected to be the Trump administration’s most severe move.
The White House’s research are anticipated to focus mainly on the VAT of the European Union. The unfavourable commercial relationship between the US and the EU has been a frequent cause of Trump’s grievances. According to the US Census Bureau, the value of products transferred between the two countries was $1.3 trillion (€1.24 trillion) in 2024, with America’s deficit coming in at $267 billion (€255 billion). The bloc does, however, import more services from the US, as the EU previously pointed out.
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