ExecutiveOrdersEO
MemoMemorandumTrump 47 · R

Presidential Memorandum

Reciprocal Trade and Tariffs

This memorandum establishes a 'Fair and Reciprocal Plan' to reduce the U.S. goods trade deficit by directing agencies to investigate non-reciprocal trade arrangements with all trading partners and propose remedies, including potential reciprocal tariffs. It broadly defines unfair practices to include foreign tariffs, VATs, non-tariff barriers, currency manipulation, wage suppression, and other market access limitations.

Federal Register Open PDF 90 FR 9837

Impact dates

  1. Commerce and USTR to initiate investigations after submission of specified agency reports due under America First Trade Policy Memorandum

  2. Commerce and USTR to submit report with proposed remedies after completing investigations

  3. OMB assessment of fiscal impacts and information collection burdens due to President

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

Steel & aluminumAutosAgriculturePharmaTechnology & softwareSemiconductors

Mechanisms

TariffMinimum import price

Role pressure

  • AdverseImporter — Reciprocal tariffs and expanded trade barriers would raise costs on imported goods across all sectors; VAT-inclusive pricing may be targeted
  • MixedDomestic producer — Potential protection from foreign competition but also risk of higher input costs and retaliatory barriers to exports
  • AdverseDownstream manufacturer — Broader definition of non-tariff barriers including regulatory requirements and subsidies could disrupt supply chains and raise input costs
  • AdverseTrading-partner exporter — Comprehensive scope covering all trading partners with potential for equivalent reciprocal tariffs on exports to U.S.

Geographies

USCNEUJPKRTWMXCAUKINVNMY

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

AAAlcoaGOOGLAlphabetAAPLAppleADMArcher Daniels MidlandAVGOBroadcomBGBungeCATCaterpillarCENXCentury AluminumCLFCleveland-CliffsCTVACortevaLLYEli LillyFFordGMGeneral MotorsHYMTFHyundai MotorINTCIntelQQQInvesco QQQ TrustJNJJohnson & JohnsonMRKMerckMETAMeta PlatformsMUMicron TechnologyMSFTMicrosoftNVSNovartisNUENucorNVDANVIDIA

Confidence: medium · Policy alerts

Key directives

  • Commerce and USTR shall initiate investigations of harm from non-reciprocal trade arrangements after submission of agency reports due under January 20, 2025 memorandum
  • Commerce and USTR shall submit report detailing proposed remedies for reciprocal trade relations with each trading partner
  • OMB Director shall assess fiscal impacts and information collection burdens within 180 days and deliver written assessment to President
  • USTR authorized and directed to publish this memorandum in Federal Register

Who is ordered

Timeline

Immediate

  • Memorandum takes effect; USTR directed to publish in Federal Register
  • Agencies directed to begin preparing for investigations after submission of reports due under January 20, 2025 America First Trade Policy Memorandum

Near term (90d)

  • Agency reports from America First Trade Policy Memorandum expected to be submitted (due April 1, 2025 per that memorandum)
  • Commerce and USTR to initiate investigations of non-reciprocal trade arrangements after those reports

Long term

  • OMB assessment due within 180 days (August 12, 2025)
  • Potential reciprocal tariffs or other remedies to be proposed after investigations completed
  • Structural rebalancing of U.S. trade relationships

Risks & tensions

  • Broad definition of 'non-reciprocal' practices (including VATs, regulatory burdens, currency practices, wage suppression) creates significant scope uncertainty and potential for trade disputes with allies and adversaries alike
  • Vague timeline for actual tariff implementation; investigations and remedies lack concrete deadlines
  • Risk of retaliatory measures from trading partners if reciprocal tariffs imposed
  • Potential WTO inconsistency given broad unilateral approach to defining unfair trade practices
  • Currency manipulation and wage suppression provisions may target developing countries and challenge existing trade norms
Presidential Memorandum: Reciprocal Trade and Tariffs · Executive Orders