VIDEO: What is a 'reciprocal tax' and why is Trump talking about it

What is a 'reciprocal tax' and why is Trump talking about it

by Patrick Gillespie   @CNNMoney

February 12, 2018:

President Donald Trump is trying to bolster his "America First" vision for trade policy. But his latest proposal might have more bark than bite.

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At an event announcing his infrastructure plan Monday, Trump said that his administration plans to soon unveil a "reciprocal tax" on goods imported to the United States from other nations.

A reciprocal tax is charged on an import from another country that charges the U.S. a similar amount to export an American product into its market. It acts essentially as a tariff.

"We're going to do a reciprocal tax and you'll hear about that during the week and the coming months," Trump said.

"We are going to charge countries outside of our country, countries that take advantage of the United States," Trump added. "Some of them are so-called allies, but they're not allies on trade." He named Mexico, Canada, China, Japan and South Korea.

http://money.cnn.com/2018/02/12/news/economy/trump-trade-reciprocal-tax/index.html

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