United States President Donald Trump has signed a presidential memorandum during a press event in the Oval Office, outlining his plans for “reciprocal tariffs”.
The “Fair and Reciprocal Plan” seeks to correct longstanding imbalances in international trade to ensure fairness across the board and to be a plan that puts the American worker first by improving the U.S.’s competitiveness in every area, reducing their trade deficit and bolstering their economy and national security.
“America has helped many Countries throughout the years, at great financial cost,” Trump said in a Truth Social post.
“It is now time that these Countries remember this, and treat us fairly – A LEVEL PLAYING FIELD FOR AMERICAN WORKERS.”
Under the plan, the U.S. will treat other countries’ non-tariff policies as unfair trade practices that warrant tariffs in response. This includes value-added taxes (VATs) and other practices trade representatives deem to be unfair trade limitations.
According to Trump, other countries also will not be able to send merchandise or other items to the U.S. through another country.
“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,” Trump said.
“Sending merchandise, product, or anything by any other name through another Country, for purposes of unfairly harming America, will not be accepted.”
The new tariffs come after Trump already imposed tariffs on China, Canada, Mexico and on steel and aluminium.
Both the tariffs on Canada and Mexico are currently on pause after both countries pledged to crack down on illegal crossings and drug trafficking from their respective borders to the U.S..
