Reciprocal tariffs are trade measures implemented by a country to counterbalance tariffs imposed by another nation. These tariffs aim to ensure fair and equitable trade terms by leveling the playing field. The U.S. government has adopted such measures to address trade imbalances and protect domestic industries from unfair competition. By implementing reciprocal tariffs, the U.S. encourages other countries to lower their tariffs and engage in fair trade practices.

With a 46% reciprocal tariff on Vietnamese products and a 49% reciprocal tariff on Cambodian products, effective from April 9, the U.S. has introduced some of the highest tariffs under its new trade policy.

Developing the right tariff mitigation strategy is crucial to minimize costs, ensure compliance, & maintain supply chain resilience.  Companies should review their supply chains, explore the available immediate, mid-term and long-term strategies to mitigate tariff impacts.  Additionally, investing in technology and innovation can improve efficiency and boost competitiveness.