U.S. President Donald Trump has introduced a new trade policy imposing reciprocal tariffs on countries based on the tariffs they levy on American goods.
In a statement posted on X on Monday, Trump emphasized that nations using the VAT system would be treated similarly to those applying tariffs, arguing that VAT can be more punitive. He also warned against routing goods through third countries to bypass U.S. trade rules.
The policy will account for foreign subsidies that give economic advantages over U.S. industries and will also address nonmonetary trade barriers that restrict American businesses from operating abroad.
Trump clarified that companies manufacturing products within the United States would not be subject to tariffs. He asserted that the policy aims to correct longstanding trade imbalances and ensure fairness for American businesses.
He has directed key government officials, including the Secretaries of State, Commerce, and Treasury, as well as the U.S. Trade Representative, to implement the policy and enforce trade reciprocity.
