• Price hikes across the board (consumers pay in raising prices)

• The proposed Reciprocal Trade Act would give the executive the authority to potentially implement tariffs indiscriminately to any nation, undermining Congress’s constitutional authority over trade agreements, and hurting the country’s standing in the global trading system

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Definition of Reciprocity:

Critics argue that the administration's definition of "reciprocity" is flawed. They contend that it focuses heavily on tariff equalization, potentially overlooking other trade barriers and complexities.

There's a concern that this approach could lead to a tit-for-tat tariff war, harming both the U.S. and its trading partners.  

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Potential for Trade Wars:

Implementing reciprocal tariffs could trigger retaliatory measures from other countries, escalating into full-blown trade wars. This could disrupt global supply chains and negatively impact businesses and consumers.  

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Impact on the Global Trading System:

The approach is seen by some as a direct assault on the multilateral trading system governed by the World Trade Organization (WTO). It could undermine established trade rules and create uncertainty in international trade.  

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Economic Consequences:

Economists warn that reciprocal tariffs could lead to higher prices for consumers, reduced export opportunities for U.S. businesses, and overall economic harm.  

There are also concerns that it would cause a huge administrative burden, to update tariff schedules for every trading partner.

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Practical Implementation:

The practicalities of implementing a system of reciprocal tariffs are complex. It would require extensive monitoring of foreign trade policies and constant adjustments to U.S. tariffs.

There are also issues with customs and border protection being able to handle the increased workload.

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Value-Added Taxes (VATs):

The administration's focus on VATs as "unfair" has drawn criticism. VATs are common in many countries and are not necessarily discriminatory against U.S. exports​