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.

President Donald Trump and Indian Prime Minister Narendra Modi held a joint news conference as the two leaders work toward a trade deal and try to reinforce a relationship. Earlier on Thursday, Trump announced that the United States will tax foreign goods at the same rate other nations apply to American products,