Reciprocal tariffs disguise US avarice

The "reciprocal" tariff strategy is an iconic move by US President Donald Trump in his administration. According to Kevin Hassett, director of the US National Economic Council, trading partners of the United States are charging tariffs "two or three times the amount the US is charging" — which is apparently not true, yet has become an excuse for the US to seek so-called reciprocity in its trade with other countries — be it a reduction in tariffs by the other side or an increase in tariffs by the US. The approach to achieving such a goal is simple as well. Take vehicle trade for example, if a country imposes a 40 percent tariff on US auto exports, the US will impose a 40 percent tariff on vehicles from that very same country.

Reciprocal transactions in international trade negotiations normally consist of two basic elements — reciprocal trading conditions and returns, that is, one party gives certain conditions and the other party makes a corresponding return. Reciprocity should be based on mutuality, which is consistent with the basis of international trade practices — interdependence. The reward given on the basis of reciprocity is also a conditional return — good for good, evil for evil. For example, between 2018 and 2020, when the US also ignited trade tensions with China, Washington negotiated with Beijing on a so-called principle of reciprocity and used threatening means before negotiations, but the true nature of seeking such "reciprocity" is purely to benefit the US.

Reciprocity has become a popular term in international trade negotiations nowadays, albeit an overly used one. There are four different scenarios that normally occur in reciprocal trade negotiations. First, trade barriers between A and B should be dismantled on an equal footing so that free trade can be achieved on a reciprocal basis. Second, countries participating in multilateral trade agreements relax trade protection levels to build a multilaterally reciprocal trading dynamic. Third, country A unilaterally raises the level of protection, and country B raises its level of protection on a reciprocal and corresponding basis. Fourth, when country A makes reciprocal demands on countries B, C, and D, the countries will begin their own round of retaliation, and the free trade system is undermined, triggering a proliferation crisis wherein all parties seek reciprocity.