U.S. President Donald Trump has announced a new trade policy aimed at promoting fairness and reciprocity in the country’s trade practices. In a statement posted on X, Trump emphasized that the new policy would impose reciprocal tariffs on countries based on the tariffs they charge on American goods.
According to Trump, countries using the Value-Added Tax (VAT) system would be treated similarly to those imposing tariffs. “For purposes of this United States Policy, we will consider countries that use the VAT System, which is far more punitive than a Tariff, to be similar to that of a Tariff,” he explained.
The new policy also targets subsidies provided by foreign countries to gain economic advantages. Trump stated that the U.S. would make provisions for such subsidies to ensure a level playing field.
Non-monetary trade barriers, such as restrictions preventing U.S. businesses from operating, would also be factored into the new trade approach. Trump assured that the U.S. would accurately determine the cost of these barriers.
In a bid to encourage domestic manufacturing, Trump clarified that there would be no tariffs if companies manufacture or build products within the United States. “There are no tariffs if you manufacture or build your product in the United States,” he noted.
Trump expressed confidence that the new policy would address long-standing unfair treatment of the U.S. in global trade. “For many years, the U.S. has been treated unfairly by other countries, both friend and foe. This system will immediately bring fairness and prosperity back into the previously complex and unfair system of trade,” he said.
To ensure the effective implementation of the new policy, Trump has instructed his Secretary of State, Secretary of Commerce, Secretary of the Treasury, and U.S. Trade Representative (USTR) to work together. “I have instructed my team to do all work necessary to deliver reciprocity to our system of trade!” he declared.
