Trump signed a memo instructing his team to begin assessing duties based on the tariffs other nations impose, as well as addressing non-tariff barriers like vehicle safety regulations and value-added taxes that raise the cost of U.S. products. However, the directive did not immediately impose new tariffs but launched an investigation into the levies by other countries, which could take weeks or months to complete. The focus will include countries such as China, Japan, South Korea, and the European Union.

This latest move escalated concerns about a broader trade conflict, with potential impacts on inflation in the U.S. Wall Street responded cautiously, relieved that immediate tariffs weren’t enacted, and stocks rose. The global stock market reached a record high, and U.S. Treasury yields fell.

Trump’s choice for commerce secretary, Howard Lutnick, stated that the administration would assess each affected country individually, with studies expected to conclude by April 1. This deadline aligns with the president’s initial instruction for his economic team to develop plans to address trade imbalances.

While Trump has previously campaigned on reducing consumer prices, he acknowledged that prices could rise temporarily due to these tariff actions. The White House official emphasized that the focus would initially be on countries with the largest trade surpluses and the highest tariffs.

Trump explained that the tariffs would aim to match other countries’ higher duties and counteract non-monetary barriers such as regulations, subsidies, and currency policies that obstruct U.S. businesses. He emphasized the need to create fair tariffs that accurately reflect these barriers.

The announcement seems partly aimed at initiating negotiations with other countries. The White House official noted that Trump would be open to lowering tariffs if other nations did the same. Though no specific global tariff plan was confirmed, the official stressed that the administration would seek more tailored, country-specific tariffs.

Tiffany Smith from the National Foreign Trade Council expressed relief that the administration was taking a more careful, methodical approach, hoping it would lead to lower tariffs and fewer barriers through dialogue with trading partners.

Since taking office, Trump has already announced tariffs on steel and aluminum imports, implemented 10% tariffs on Chinese goods, and delayed tariffs on goods from Canada and Mexico. He also mentioned the possibility of separate tariffs on cars, semiconductors, and pharmaceuticals.

Trade experts warned that implementing reciprocal tariffs could be complex for the administration, given the legal challenges. Potential statutes that could be used include Section 122 of the Trade Act of 1974 and Section 338 of the Tariff Act of 1930, though the latter has never been applied. Trump could also rely on the International Emergency Economic Powers Act, which was used to justify tariffs on China and is pending for Canada and Mexico.

Meanwhile, Indian Prime Minister Narendra Modi, who met with Trump on Thursday, offered to discuss reducing tariffs and increasing U.S. imports of oil, gas, and military equipment. Trump confirmed that the U.S. would reciprocate India’s tariffs. There was optimism that a trade deal with India could be reached within months.

As President Trump navigates his early months in office, he has already used tariffs as a powerful tool to secure favorable trade agreements, attract investment, and foster greater law enforcement cooperation with both traditional allies and rival nations. India, with its growing economic influence and strategic position in Asia, is increasingly seen as a key player in Trump’s broader strategy to counterbalance China’s expanding global footprint.

Modi’s anticipated “gift” could be a key bargaining chip in their discussions. While details of the proposed concessions remain closely guarded, there are indications that India may offer to lower certain tariffs that currently affect U.S. businesses operating in the country. This move could signal India’s willingness to create a more open trade environment in exchange for U.S. support on key issues, including defense collaboration and investments in infrastructure and technology.

In addition to trade, the two leaders are expected to focus on how the U.S. and India can further align their efforts in countering China’s growing economic and military influence in the Indo-Pacific region. With tensions between China and the U.S. continuing to escalate, Modi’s India could serve as an essential partner in Trump’s vision of an international coalition to challenge China’s ambitions, particularly in areas like trade, technology, and military alliances.

As both Modi and Trump look to enhance their respective countries’ influence on the world stage, the outcome of this high-level meeting could set the stage for a new era of cooperation between the two largest democracies in the world. For India, the opportunity to solidify its relationship with the U.S. presents the potential for increased access to American markets, defense technologies, and geopolitical clout in the region. For the U.S., strengthening ties with India is seen as a key element in countering China’s growing power and influence.

While the upcoming talks hold significant promise, much depends on how the two leaders approach the delicate balance of trade concessions, defense collaboration, and regional security concerns. As the meeting draws closer, all eyes will be on how Modi and Trump navigate these issues and whether they can build a stronger partnership that serves both nations’ long-term interests in the evolving global landscape.