“Fairness in trade”
“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!” Trump stated. He emphasised that this measure would create a “level playing field for American workers.”
Targeting VAT and trade barriers
Trump also indicated that countries using a Value-Added Tax (VAT) system, which he described as “far more punitive than a Tariff,” would be treated similarly under this new policy. He warned against attempts to circumvent US tariffs by routing goods through third-party nations, saying, “Sending merchandise, product, or anything by any other name through another Country, for purposes of unfairly harming America, will not be accepted.”
Also, he pledged to address government subsidies and non-monetary trade barriers that other countries impose, claiming the US has the means to “accurately determine the cost of these Nonmonetary Trade Barriers.”
“No tariffs if you build in the US”
In an effort to incentivise domestic production, Trump assured that companies manufacturing their products in the US would not face tariffs: “There are no Tariffs if you manufacture or build your product in the United States.”
A shift in US trade strategy
Trump’s announcement signals a dramatic shift from traditional US trade policy, which often involves negotiations and trade agreements rather than strict reciprocity.
He argued that the US has been “treated unfairly by other Countries, both friend and foe,” and that this system would “immediately bring Fairness and Prosperity back into the previously complex and unfair System of Trade.”
Instructions to federal agencies
To implement the new policy, Trump stated that he has directed key government officials, including the Secretary of State, Secretary of Commerce, Secretary of the Treasury, and the United States Trade Representative (USTR), to take necessary steps to enforce the plan. “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 wrote.
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