<h1>Trump's Reciprocal Tariffs Shift U.S. Trade Policy, Challenge Global Agreements, Risk Straining Ally Relations</h1> President Donald Trump's announcement of 'reciprocal' tariffs marks a significant shift in U.S. trade policy, challenging long-standing international trade agreements. These tariffs aim to equalize the rates imposed by other countries on U.S. exports, potentially disrupting global trade and straining relations with allies. While Trump argues that these measures address trade imbalances and unfair practices, economists warn they could lead to increased costs for consumers and further complicate trade relations. The approach also targets foreign subsidies and VATs, adding complexity to the trade strategy. Despite past tariffs, the U.S. trade deficit remains high, driven by domestic economic factors.