<h1>Trump Proposes Reciprocal Tariffs to Address Trade Imbalances; Risk of Trade War and Inflation Looms</h1> President Donald Trump announced a plan to implement reciprocal tariffs on US trading partners, aiming to match the tax rates other countries impose on imports. This move could provoke economic tensions with both allies and rivals, potentially leading to a trade war. The tariffs are intended to address trade imbalances and may prompt new negotiations. However, they risk increasing inflation and slowing economic growth, with American consumers and businesses likely bearing the costs. The plan includes targeting various trade barriers such as value-added taxes and currency undervaluation. Retaliatory measures from countries like China, the EU, Canada, and Mexico are anticipated.