Reciprocal tariffs mean that the policy of the US is now to match any tariff that another country imposes.

Everyone knows that tariffs are stupid. They increase prices and reduce trade. That’s why I thought this was a stupid idea. Boy, was I wrong.

It turns out that instead of the US imposing matching tariffs on Canada, Canada decided to remove ALL tariffs on US goods. This makes a lot more sense.

Canada depends on the US buying her goods a lot more than the US depends on Canada to purchase hers. So all was fine for Canada when she raised the prices of US goods purchased in Canada, but if the US were to match those tariffs and raise the prices of Canadian goods sold in the US, it would devistate Canada’s economy.

Rather than let that happen, they dropped their tariffs against the US. Now fair is fair. The two countries are equal. 0% tariffs on the other. This means lower prices and more choices for people in both countries.

Yesterday, Israel dropped ALL of her tariffs on the US, some of which were as high as 200%. Crazy. Now it’s fair: 0% for both.