Reciprocal Tariff

The application of a reciprocal tariff is to force another nation to trade on equal terms by ensuring that import duties are applied in the same way. As a simple example: If nation ‘A’ charges a 10% duty on imported shoes and country ‘B’ charges 25% on incoming shoes, then country ‘A’ would charge incoming shoes from country ‘B’ a 15% reciprocal tariff to make it even. 

A nation can choose to apply reciprocal tariffs on specific products or on all products from a given country. 

The U.S. use of reciprocal tariffs was achieved by applying a baseline tariff to nearly all trading partners, while imposing higher rates on a specified list deemed to have multiple unfair tariff applications against U.S. products. 

Application of reciprocal tariffs is relatively new and going through various changes. U.S. importers and exporters should consult with brokerage services to confirm what rates are in place and what products they may or may not apply to. 

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