President Donald Trump’s shift in policy to reciprocal tariffs is a relief to markets, U.S. consumers and most trading partners.

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.

WASHINGTON—President Trump on Thursday is expected to outline reciprocal tariffs on nations that have imposed levies on U.S. exports, the White House said, using executive action to bring to life a far-reaching proposal from his first term that never came to fruition.