Donald Trump has announced a “Reciprocal Tariff” policy, which would impose tariffs on countries that tax US imports. This initiative aims to create a more balanced and fair trade system by applying equivalent tariffs to those imposed on US products. The policy will target foreign taxes, including VAT, which Trump considers comparable to tariffs. Trump emphasized that countries could avoid these tariffs by reducing or eliminating their tariffs on US goods. He defended the approach as fair, arguing it would level the playing field for American workers. This move follows previous tariff threats against Canada and Mexico, which led to retaliatory measures.
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