Q&A on reciprocal tariffs

Reciprocity is the principle that underpins all trade agreements with the aim of broadening and fluidifying trade. Each country derives advantages with a view to creating a mutual benefit. From 1934 under Roosevelt, then in the following decades with the GATT and the WTO, the US has always found this to be to their advantage. Donald Trump, on the other hand, believes that reciprocity has only benefited the rest of the world, the irrefutable proof being that the US has trade deficits with virtually all countries. On Wednesday 2 April, he plans to announce a programme of reciprocal tariffs aimed at correcting this situation. Rather than reciprocity, the goal is more extortion and intimidation.