US President Donald Trump has introduced a new trade policy focused on fairness and reciprocity, stating that the US will impose reciprocal tariffs on foreign countries, matching the tariffs they apply to American goods.
Trump emphasized that this approach aims to combat unfair trade practices, including non-monetary barriers, subsidies, and VAT systems, while encouraging foreign nations to reduce or eliminate their tariffs on US products.
In a post on X on Monday (local time), Trump stated, “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!”
He continued, “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. Sending merchandise or products through another country to unfairly harm America will not be accepted. We will also account for subsidies provided by countries to gain an economic advantage over the United States.”
Trump also addressed provisions for non-monetary tariffs and trade barriers, stating, “Likewise, provisions will be made for Nonmonetary Tariffs and Trade Barriers that some countries impose to block our products or prevent US businesses from operating. We can accurately determine the cost of these barriers. It’s fair to all, no country can complain. And if a country believes the US is imposing too high a tariff, all they need to do is reduce or eliminate their tariffs against us. There will be no tariffs if you manufacture or build your product in the United States.”
The post further stated, “For years, the US has been treated unfairly by both allies and adversaries. This system will restore fairness and prosperity to the previously complex and unjust trade system. America has supported many countries at great financial cost. It’s time for these countries to remember this and treat us fairly – a level playing field for American workers. I have instructed my Secretary of State, Secretary of Commerce, Secretary of the Treasury, and US Trade Representative to take all necessary actions to ensure reciprocity in our trade system.”
