By Abubakar Yunusa
United States President Donald Trump has announced plans to set reciprocal tariffs on all US trade partners, ensuring they charge the same tariffs America imposes on them.
In a statement on Monday, Trump said the policy aims to restore fairness and prosperity in what he described as a previously complex and unfair trade system.
On February 2, Trump signed economic orders that imposed significant new tariffs on Canada, Mexico, and China, which remain the US’ largest trading partners.
However, Trump has said countries can level the playing field by reducing or eliminating their tariffs against the US if they believe America’s tariffs are unfairly high.
“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,” the president said.
“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. 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.
“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.”
Trump explained that for many years, other countries have treated the United States unfairly in trade relations, whether they are allies or adversaries.
“America has helped many Countries throughout the years, at great financial cost,” he said.
“It is now time that these Countries remember this, and treat us fairly – A LEVEL PLAYING FIELD FOR AMERICAN WORKERS.”
The president added that he has directed the secretary of state, secretary of commerce, secretary of the treasury, and the United States trade representative (USTR) to take all necessary actions to implement the reciprocal trade policy effectively.
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