'No More, No Less' Donald Trump Unveils New Reciprocal Tariff Plan

(MENAFN- Live Mint)

US President Donald trump has announced on his Truth Social platform, a "Reciprocal Tariff" system aimed at addressing what he calls "unfair" international trade practices. Trump declared that under this policy, the US would impose tariffs identical to those levied by other nations on American goods and services.

"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.”

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