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’No more, no less’: Trump unveils trade policy with reciprocal tariffs for fairness – Here’s how he plans to apply it
Trump announced a new trade policy imposing reciprocal tariffs based on other countries' charges
US President Donald Trump has announced a new trade policy under which the United States will impose tariffs that match those of other countries. According to Trump, the US will charge a reciprocal tariff based on what other nations charge America—no more, no less. Countries using a VAT system, which he considers more punitive than traditional tariffs, will be treated similarly.
Trump further stated that the US will not tolerate countries sending goods through third nations to bypass tariffs and harm the US economy. He also mentioned addressing subsidies, non-monetary tariffs, and trade barriers that prevent US products or businesses from entering foreign markets. The US can assess these non-monetary trade barriers to ensure fairness accurately.
Sharing a post on X on Monday, Trump said, "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!"
The post added, "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, products, or anything by any other name through another country for purposes of unfairly harming America will not be accepted. In addition, we will provide subsidies provided by countries to take economic advantage of the United States."
Trump emphasised that if any country feels the US tariffs are too high, it can reduce or eliminate its own tariffs against the U.S. He also made it clear that no tariffs will be applied to goods produced in the US.
The post said, "Likewise, provisions will be made for Nonmonetary Tariffs and Trade Barriers that some countries charge to keep our product out of their domain or, if they do not even let US businesses operate. We can accurately determine the cost of these Nonmonetary Trade Barriers. 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."
Trump stressed that the US has long been treated unfairly in global trade, both by allies and adversaries. He believes this new system will restore fairness, bring prosperity, and createa level playing field for American workers. Trump has instructed the Secretary of State, Secretary of Commerce, Secretary of the Treasury, and U.S. Trade Representative (USTR) to ensure the policy is implemented.
It added, "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 Trade System. America has helped many Countries throughout the years, at great financial cost. It is now time that these Countries 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 United States Trade Representative (USTR) to do all work necessary to deliver reciprocity to our trade system."
What is a reciprocal tariff ?
A reciprocal tariff refers to a policy where countries impose similar tariffs or levies on each other's goods. The idea is to ensure fairness in trade relations, meaning that if one country imposes a tariff on another's goods, the other country will respond with an equivalent tariff on the first country’s goods.
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Business NewsEconomy’No more, no less’: Trump unveils trade policy with reciprocal tariffs for fairness – Here’s how he plans to apply it
First Published:18 Feb 2025, 08:20 AM IST
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