'No country can complain': Trump outlines plan for reciprocal tariffs
What's the story
United States President Donald Trump has unveiled a new trade policy based on reciprocal tariffs. The slated goal is to make international trade fair by imposing tariffs equal to those imposed by other countries on American goods. "No more, no less," Trump said of the approach which aims to create an equal playing field for American workers.
Twitter Post
Trump's post on X
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!
— Donald J. Trump (@realDonaldTrump) February 17, 2025
For purposes of this United States Policy, we will consider Countries that use the…
Policy details
New policy targets VAT system and 3rd-party routing
The policy also deals with countries that follow a Value-Added Tax (VAT) system, which Trump sees as more punitive than regular tariffs. Such countries will be treated the same under the new tariff system. Trump further issued a warning against attempts to bypass US tariffs by routing goods through third-party nations, declaring that such actions "will not be accepted." The policy also aims at government subsidies and non-monetary trade barriers that keep US products and businesses out of foreign markets.
Trade barriers
Policy aims to tackle government subsidies, non-monetary trade barriers
Trump claimed the US can accurately assess the cost of these non-monetary trade barriers. There are incentives for domestic production as no tariffs will be applicable on goods manufactured in the United States. "There are no Tariffs if you manufacture or build your product in the United States," he said. "It is fair to all, no other country can complain," he said, adding the US has been treated unfairly by other countries, both friend and
Policy shift
Trump's policy marks departure from traditional US trade policies
Trump's announcement marks a major departure from the US's traditional trade policies, which usually involve negotiations and trade agreements, rather than strict reciprocity. He argued the US has been treated unfairly by both allies and adversaries and believes this system will restore fairness and prosperity. To implement this new policy, Trump has directed key government officials to ensure its execution. The reciprocal tariff plan is expected to be proposed by April following an order signed by Trump on February 13.