US President Donald Trump on Tuesday reiterated his stance on reciprocal tariffs and said that the policy will ensure fairness in the trade.
In a social media post on Truth Social, Trump said that countries that use VAT (Value Added Tax) will be treated similarly to countries with tariffs. Additionally, US will also address trade barriers that prevent its goods from entering other countries or make it hard for country’s businesses to operate there.
“On Trade, I have decided, for purposes of Fairness, that I will charge a RECIPROCAL Tariff meaning, whatever Countries charge the United States of America, we will charge them – No more, no less! 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,” Trump said.
“In addition, we will make provision for subsidies provided by Countries in order to take Economic advantage of the United States,” he added.
Trump also mentioned addressing subsidies, non-monetary tariffs, and trade barriers that prevent US products or businesses from entering foreign markets.
“Likewise, provisions will be made for Nonmonetary Tariffs and Trade Barriers that some Countries charge in order to keep our product out of their domain or, if they do not even let U.S. businesses operate. We are able to accurately determine the cost of these Nonmonetary Trade Barriers,” the US president said.
Trump also said that if any country feels the US tariffs are too high, it can reduce or eliminate its own tariffs against the US. He also made it clear that no tariffs will be applied to goods produced in the US.
“It is fair to all, no other Country can complain and, in some cases, if a Country feels that the United States would be getting too high a Tariff, all they have to do is reduce or terminate their Tariff against us. There are no Tariffs if you manufacture or build your product in the United States,” he added.
Trump claimed that this policy aims to create a fair, level playing field for US workers, reversing unfair treatment from other countries. He claimed that officials including secretary of state and US trade representatives will work to implement this system of fairness.
“For many years, the US 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. America has helped many Countries throughout the years, at great financial cost,” Trump said.
“It is now time that these Countries remember this, and treat us fairly – A level playing field to American workers. I have instructed my Secretary of State, Secretary of Commerce, Secretary of the Treasury, and United States Trade Representative (USTR) to do all work necessary to deliver RECIPROCITY to our System of Trade!” he added.
President Donald Trump signed an order on February 13 directing his administration to propose “reciprocal tariffs” on US trading partners, a move that could significantly impact global trade. The tariffs, expected by April, aim to match or offset tariffs and other trade barriers imposed on US goods by foreign nations.
“Reciprocal” tariffs typically refer to policies ensuring that countries impose similar levies on each other’s goods, aiming for fairness in trade relations. Historically, reciprocity in trade often meant the mutual reduction of trade barriers to facilitate economic growth and global integration. The US Reciprocal Trade Agreements Act of 1934, for instance, marked a shift away from American protectionism, enabling the US and its trading partners to negotiate lower tariffs on each other’s products.