U.S. President Donald Trump has announced a new trade policy that will impose reciprocal tariffs on foreign countries.
The policy ensures that the U.S. charges the same tariff rates that other nations apply to American goods.
Trump shared the decision on Monday through his X handle, explaining that the move is aimed at creating fair trade conditions for American businesses.
He noted that countries with Value Added Tax (VAT) systems, which he described as stricter than tariffs, would also be included under the policy.
He warned against attempts to bypass the tariffs by rerouting goods through third countries, calling such actions unfair.
Additionally, the U.S. government plans to address foreign subsidies that give overseas businesses an advantage over American companies.
To implement the policy, Trump has directed key officials, including the Secretaries of State, Commerce, and Treasury, as well as the U.S. Trade Representative, to take necessary steps.
He stated that the U.S. has faced unfair trade practices for years and that this system will ensure fair treatment and economic benefits for American workers.
Trump also mentioned that countries could lower or remove their tariffs on U.S. goods if they wish to avoid higher charges under the new policy.