Trump is expected to announce reciprocal tariffs in the midst of budget negotiations with Republican lawmakers

President Trump is expected to announce reciprocal tariffs in the near future in order to promote extended tax cuts and balance trade.

Three sources with knowledge of the situation have informed reporters that President Donald Trump has informed Republican legislators of his intention to announce reciprocal tariffs as early as Friday.

The action would fulfill a campaign pledge made by Trump to impose tariffs on American imports that are equivalent to the rates that trading partners apply to US exports. Nevertheless, the precise countries that are impacted are still unknown, as the proposal’s specifics have not yet been disclosed.

According to the sources, Trump addressed the proposal during budget negotiations at the White House on Thursday. The president and his advisers have suggested that the extension of his 2017 tax cuts could be financed by imposing higher tariffs on foreign imports. Nevertheless, it may be difficult to generate substantial revenue through tariffs, as they have historically only contributed to approximately 2% of the annual US revenue.

Requests for comment were not promptly addressed by the White House.

Trump had previously announced 25% tariffs on Canada and Mexico on Saturday; however, they were postponed in response to a negative reaction from investors. Subsequently, both nations reached an agreement to enhance border enforcement initiatives, which were a significant concern for President Trump.

Wall Street extended losses on Friday in response to reports of Trump’s conversation with legislators.