President Donald Trump has laid out his vision for a major trade policy shift, emphasizing reciprocal tariffs as a tool to balance trade relations and protect American industries. In a detailed Truth Social post on Saturday, Trump explained how these tariffs will work, targeting countries that impose unfair trade barriers on U.S. goods.
Trump announces ‘reciprocal’ tariffs in latest trade move https://t.co/gTT0DnZvQ6
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“For purposes of this United States Policy, we will consider Countries that use the VAT [value-added tax] System, which is far more punitive than a Tariff, to be similar to that of a Tariff,” Trump wrote. He stressed that foreign nations using VAT systems, which tax imported goods more heavily than domestic products, are engaging in trade practices that put American businesses at a disadvantage.
Trump’s tariff strategy includes a 25% tax on all aluminum and steel imports coming into the U.S. He has also announced 25% tariffs on goods imported from Canada and Mexico, as well as a 10% tariff on imports from China. These measures, he explained, are necessary to level the playing field and ensure American manufacturers are not undercut by unfair foreign trade policies.
His administration is also cracking down on companies attempting to bypass these tariffs. “Sending merchandise, product, or anything by any other name through another Country, for purposes of unfairly harming America, will not be accepted,” Trump wrote, signaling that his trade policy will take a hard stance against countries using third-party nations to dodge U.S. tariffs.
Trump framed the move as a matter of fairness, arguing that reciprocal tariffs will restore balance and encourage more American-made production. By making foreign nations pay the same duties they impose on U.S. exports, he believes these policies will boost domestic manufacturing, create jobs, and reduce trade deficits.
With global markets watching closely, Trump’s aggressive stance on trade policy is setting the stage for a new era of economic nationalism, one that prioritizes American industries and workers over foreign competitors.
