Trump unveils bold new U.S. trade policy, says reciprocal tariffs will be enforced
On Monday, February 18, 2025, U.S. President Donald Trump announced a significant overhaul of the nation’s trade policy, vowing to implement reciprocal tariffs on countries based on the tariffs they impose on American goods.
In a statement posted on X, Trump clarified that countries using the Value-Added Tax (VAT) system would be treated similarly to those imposing tariffs. “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,” he said. “Sending merchandise, product, or anything by any other name through another country, for purposes of unfairly harming America, will not be accepted.”
Trump’s new policy also targets foreign subsidies that countries provide to gain economic advantages. “We will make provision for subsidies provided by countries in order to take economic advantage of the United States,” he added.
The President also highlighted that nonmonetary trade barriers—such as restrictions preventing U.S. businesses from operating in other countries—will be taken into account. “We are able to accurately determine the cost of these Nonmonetary Trade Barriers,” Trump noted.
Trump further emphasized that there would be no tariffs for companies manufacturing or building products within the U.S. “There are no tariffs if you manufacture or build your product in the United States,” he said.
The President described the policy as a solution to the long-standing issue of unfair treatment of the U.S. in global trade. “For many years, the U.S. 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 system of trade,” Trump declared.
He instructed key officials, including the Secretary of State, Secretary of Commerce, Secretary of the Treasury, and the U.S. Trade Representative (USTR), to implement the new policy and ensure that reciprocity is enforced in U.S. trade practices. “I have instructed my team to do all work necessary to deliver reciprocity to our system of trade!” Trump stated.
