In something of a titanic post on his Truth Social social media platform, President Donald Trump announced a sweeping change to American trade policy, saying that America would henceforth be instituting a “reciprocal” trade policy to equalize the American market with what is directed against it by foreign markets.
Beginning the post, President Trump said that the policy was meant “for purposes of Fairness” for America, something that hasn’t existed so far, saying, “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!”
He continued, explaining the sort of monetary barriers foreign countries use to keep out American products, “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. Sending merchandise, product, or anything by any other name through another Country, for purposes of unfairly harming America, will not be accepted. In addition, we will make provision for subsidies provided by Countries in order to take Economic advantage of the United States.”
Then, noting that countries wouldn’t be able to sneak nonmonetary trade barriers by America, he said, “Likewise, provisions will be made for Nonmonetary Tariffs and Trade Barriers that some Countries charge in order to keep our product out of their domain or, if they do not even let U.S. businesses operate. We are able to accurately determine the cost of these Nonmonetary Trade Barriers.”
He then said, further explaining the fairness of the policy, “It is fair to all, no other Country can complain and, in some cases, if a Country feels that the United States would be getting too high a Tariff, all they have to do is reduce or terminate their Tariff against us. There are no Tariffs if you manufacture or build your product in the United States.”
Giving his take on the recent history of American trade policy and how we are treated by our trading partners, the president then said, “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.”
He further noted, on that same point, that their not treating America fairly has harmed American workers and this new policy will help correct that, saying, “America has helped many Countries throughout the years, at great financial cost. It is now time that these Countries remember this, and treat us fairly – A LEVEL PLAYING FIELD FOR AMERICAN WORKERS.”
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Noting that this will be a sweeping policy involving not just the Departments of Trade and Commerce, but also the State Department, the president noted, “I have instructed my Secretary of State, Secretary of Commerce, Secretary of the Treasury, and United States Trade Representative (USTR) to do all work necessary to deliver RECIPROCITY to our System of Trade!”
Watch Trump announce the policy here: