Nations contemplate levying 19 percent reciprocal tariffs on U.S. services
(MENAFN) Nations might consider levying reciprocal tariffs of up to 19% on U.S. services to address ongoing bilateral trade imbalances, as reported on Saturday.
The publication employed the same methodology the U.S. has used to justify its own reciprocal tariffs—this time applied to the services sector. The analysis suggested that such measures could leave major American firms vulnerable to foreign retaliation.
While the U.S. has long maintained a trade deficit in goods, the situation is reversed when it comes to services, the article noted. America posted a services trade surplus of $295 billion—nearly a record—highlighting its global strength in sectors such as cloud computing, logistics, and financial instruments.
The article emphasized that the U.S. is a dominant exporter in services rather than traditional manufacturing, excelling in areas like technology infrastructure, delivery systems, and financial hedging.
Governments have several tools at their disposal to restrict U.S. service exports, including antitrust probes, data localization requirements, licensing regulations, and targeted taxation. However, such actions could also inflict economic harm on their own businesses and consumers—paralleling the domestic economic impact of former President Donald Trump's tariffs on goods, the report concluded.
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