Former US President Donald Trump unveiled a proposed trade policy focused on implementing a 'reciprocal tariff system', aiming to level the playing field with foreign countries. Sharing details on Truth Social, Trump explained that the US will impose the same tariffs on other countries that they charge on American products.
Trump outlined his policy, stating, “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 noted that countries applying value-added taxes (VAT) would be treated similarly to those imposing tariffs. Additionally, Trump addressed the issue of foreign goods being rerouted through third countries to exploit loopholes, stressing that such practices will no longer be tolerated.
“In addition, we will make provision for subsidies provided by Countries in order to take Economic advantage of the United States,” Trump added. He also pointed out that nonmonetary trade barriers — such as policies that restrict US businesses from entering certain markets — will be evaluated and assigned accurate cost estimates to ensure fairness in the new system.
Trump emphasized that the US has been treated unfairly for years, both by allies and adversaries. He declared the new system would restore fairness and prosperity, urging other nations to reconsider their tariffs if they find the reciprocal rates too high.
“There are no Tariffs if you manufacture or build your product in the United States,” he added, encouraging companies to invest domestically.
Trump has directed key officials, including the Secretary of State and the US Trade Representative, to implement this system swiftly, saying, “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!”