Trump Announced a Major Reciprocal Tariff System

President Donald Trump wrote a detailed post on Truth Social and Twitter about his trade policy reform, announcing a system of reciprocal tariffs.

This consists of charging tariffs to countries trading with the United Statesaccording to the tariffs those countries impose on American products.

This measure was taken "for reasons of fairness," according to Trump. In his post, he detailed how the reciprocal tariffs would be applied to countries using the VAT system (Value Added Tax), which he considers more punitive than a traditional tariff, and will treat them similarly to a tariff.

He also warned that unfair trade practices will not be accepted, such as sending products through another country to harm the United States, whether through dumping practices or subsidies. 

Trump also expressed that subsidies from other countries seeking to economically exploit the United States will be considered, as well as non-monetary or para-tariff barriers that prevent or hinder American exports.

These barriers can be precisely determined, said the president, and will be considered in the calculation of tariffs. Trump argued that his system is fair for everyone, as any country that considers the American tariff too high can reduce or eliminate their own tariffs.

He also highlighted that there will be no tariffs if companies manufacture products within U.S. territory. 

The president also emphasized that, for years, the United States has been treated unfairly by other countries, both allies and adversaries. According to Trump, his new trade policy will restore fairness and prosperity to the trade system, which he considered complex and unfair.

He reiterated that the United States has helped many countries over the years, incurring significant financial costs, and now it's time for those countries to return fair treatment, which would mainly benefit American workers.

As part of his approach, Trump indicated that he has instructed several members of his cabinet, such as the Secretary of State, the Secretary of Commerce, the Secretary of the Treasury, and the United States Trade Representative (USTR), to work on implementing the reciprocal system.

Regarding the economic effects of his policy, Trump stated that the implementation of reciprocal tariffs will result in massive job creation in the United States.  As foreign trade partners are incentivized to move their businesses to U.S. soil to avoid tariffs.

In a recent statement, Trump expressed that companies could build factories and plants on U.S. territory, including those in sectors like medicine, the automotive industry, and semiconductor manufacturing, without having to pay tariffs.

Trump maintained that as companies establish themselves in the United States, the country will experience a "surge of jobs."

This policy of reciprocal tariffs and job creation through the relocation of factories to the United States have been criticized by some sectors, although Trump remains firm that his approach will greatly benefit the American economy in the long term.

With this strategy, he hopes that other countries will adjust their trade policies and ultimately create a "level playing field" for American workers.