On Feb. 13, President Donald Trump issued a memorandum directing the Secretary of Commerce and U.S. Trade Representative (USTR) to review all tariffs imposed on U.S. exports as well as other non-tariff trade barriers that undermine U.S. market access abroad. It then directs these officials to recommend a reciprocal duty amount or other measure that should be applied in response.

This memorandum itself does not contemplate which specific tariff authorities could be used to impose reciprocal tariffs. Instead, it states that USTR and the Commerce Department “shall initiate, pursuant to their respective legal authorities, all necessary actions to investigate the harm to the United States from any non-reciprocal trade arrangements adopted by any trading partners.”

The new “reciprocal” memorandum builds on the approach outlined in the America First Trade Policy Memorandum that President Trump issued on the first day of his second term. That document directed the same officials to identify any unfair trade practices by other countries and recommend appropriate solutions. It also identified the International Emergency Economic Powers Act (IEEPA) as a potential tool through which to respond.

This new memorandum does not include a specific deadline by which the administration will impose reciprocal tariffs. Instead, it calls for the relevant officials to recommend reciprocal tariffs to the president after they deliver the reports required by the America First Trade Policy Memorandum. These are due on April 1.

In response to a question from a reporter regarding the timing of these additional tariffs, President Trump deferred to Commerce Secretary nominee Howard Lutnick. In his response, the incoming secretary appeared to conflate the requirements of the two memorandums and reiterated April 1 as the date by which the administration will be ready to impose reciprocal tariffs—to which the president interjected “pretty close.” However, neither memorandum precludes action before or after this date.

In comments from the Oval Office, President Trump explained that “reciprocal” tariffs would be applied to all nations with no exclusions. A White House Fact Sheet identified India, Brazil, the European Union (EU) and Canada as countries that impose unfair trading practices on the United States.” In his remarks , the president also stated that the United States will treat the EU’s Value Added Tax (VAT) “like a tariff.” However, the president also left the door open to negotiation, noting that if other countries “reduce or terminate their tariff against us … we will pay the same thing.”

If implemented, the move toward “reciprocal” tariffs will represent a major departure from the World Trade Organization’s (WTO) General Agreement on Tariffs and Trade (GATT), which includes the most-favored-nation (MFN) principle. Under the MFN system, any favorable trading terms offered by one WTO member to another must be extended to all other WTO members. If fully implemented, this will likely force a shift away from the WTO to an approach of negotiating tariffs on a country-by-country basis.

In addition to the announcement on reciprocal tariffs, President Trump warned that additional tariffs on automobiles, pharmaceuticals and semiconductors will be imposed soon.