US President Donald Trump has announced a new trade policy that will apply reciprocal tariffs on countries based on the duties they place on American goods. In a statement put on X on Monday, Trump highlighted that countries that use the VAT system will be penalised similarly to those who impose tariffs. “For the purposes of this United States Policy, countries that use the VAT System, which is significantly more punishing than a Tariff, shall be treated similarly. “Sending merchandise, products, or anything else under any other name through another country in order to unfairly harm America will not be accepted,” he stated.
The new regulation also targets foreign subsidies used to obtain an economic advantage. “We will make provision for subsidies provided by countries in order to take economic advantage of the United States,” he stated. Trump emphasised that nonmonetary trade barriers, such as regulations blocking US businesses from functioning, will also be considered in the new trade strategy.
“We are able to accurately determine the cost of these Nonmonetary Trade Barriers,” according to him. He also stated that there will be no tariffs if corporations produce or build things in the United States. “There are no tariffs if you manufacture or build your product in the United States,” he said.
Trump also stated that this proposal will solve the long-standing unjust treatment of the United States in global commerce. “For many years, the United States has been treated unfairly by other countries, both friendly and hostile. “This system will immediately restore fairness and prosperity to the previously complex and unfair system of trade,” Trump stated.
Trump has directed his Secretaries of State, Commerce, Treasury, and U.S. Trade Representative (USTR) to implement the new policy and assure reciprocity in US trade practices. “I have instructed my team to do all work necessary to deliver reciprocity to our system of trade!” he told us.
