ALBAWABA- U.S. President Donald Trump announced a new trade policy on X, declaring that the United States will implement a "Reciprocal Tariff" system.
Under this approach, the U.S. will impose the same tariffs on foreign countries as they charge American goods—no more, no less, as he tweeted on X.
Trump also stated that Value-Added Tax (VAT) systems used by other nations would be considered equivalent to tariffs, and any attempts to bypass U.S. trade rules by rerouting goods through third countries would not be tolerated.
Additionally, the U.S. will account for subsidies and nonmonetary trade barriers that some nations use to block American products or restrict U.S. businesses from operating in their markets.
The policy, according to Trump, is designed to correct what he called "years of unfair treatment" of the U.S. in global trade. He emphasized that the new system would restore fairness and prosperity to American businesses and workers, ensuring a "level playing field."
Trump has directed key officials, including the Secretaries of State, Commerce, Treasury, and the U.S. Trade Representative (USTR), to take necessary steps to enforce the new "reciprocity" policy.
He reiterated that countries wishing to avoid tariffs should simply reduce or eliminate their own tariffs on U.S. goods.
The announcement signals a shift toward more aggressive trade enforcement, which could impact global trade relations and spark reactions from major U.S. trading partners, particularly following Trump's tariffs imposed on Canada, China, and Mexico.