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General TradingR
Reciprocal Tariffs
Tariffs imposed by one country in response to tariffs levied by a trading partner, matching or mirroring the other country's trade barriers. They are used as a tool in trade negotiations to pressure partners toward fairer trade terms.
Example
“When the EU placed a 25% tariff on U.S. steel, the U.S. responded with reciprocal tariffs on European wine and cheese, escalating the trade dispute and causing volatility in affected sectors.”