What do Federal Reserve leaders think about President Trump’s tariffs and how they will affect inflation? And how will they react if he imposes stiff sanctions on other countries?

Here’s what you need to know about reciprocal tariffs and who might be impacted by Trump’s plan. Reciprocal tariffs refer to tariffs—the taxes charged on imported goods—the U.S. government plans to levy against global trading partners that are equal to the existing tariffs foreign countries have set against American goods.

In a joint televised interview with billionaire Elon Musk, US President Donald Trump made it clear that India will not be spared from Washington's reciprocal tariffs.

President Donald Trump said Saturday value-added taxes, taxes levied to goods during each stage of production which are widely used in Europe, will be considered tariffs as part of the reciprocal tariff plan he argues would level the playing field in global trade—though economists project they would increase inflation this year.

President Trump on Saturday announced that value-added tax systems in other countries will be treated like tariffs — and included in his new plan to impose US levies to match. “We will consider countries that use the VAT System,

Donald Trump unveiled a “reciprocal tariff” policy, stating the US will match tariffs imposed by other nations to ensure fair trade. He also plans to treat VAT systems as tariffs and prevent trade circumvention through third-party countries.