President Donald Trump announced Thursday that his administration’s reciprocal tariff policy will include foreign value-added taxes (VATs) and non-tariff barriers, a move that could significantly alter the global trade landscape by targeting tax structures and regulatory policies that have long been criticized as unfair to U.S. businesses.
In a post on X, Mr. Trump reiterated his commitment to reciprocal tariffs, stating that the U.S. will impose duties equivalent to those levied by other countries. He said the policy will now account for VATs and other trade barriers that act as indirect 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 wrote. He also stated that non-monetary trade barriers, such as regulations that restrict U.S….
