Trump also announced that he is planning to impose tariffs of 25 percent or higher on semiconductors and pharmaceuticals.

In starting a process to impose reciprocal tariffs on American trading partners, the White House is sowing uncertainty and risking inflation.

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.