Trump Vows to Execute 'Reciprocal Tariffs' for Countries Using VAT Systems: 'For Purposes of Fairness'

President Donald Trump has vowed to implement "reciprocal tariffs" on all products sent by countries using the VAT system "for purposes of fairness."

The president said in a post on X Monday that his administration plans to charge countries "no more, no less" than the value added tax implemented on goods by other countries.

"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," Trump wrote.

On Trade, I have decided, for purposes of Fairness, that I will charge a RECIPROCAL Tariff meaning, whatever Countries charge the United States of America, we will charge them - No more, no less!

For purposes of this United States Policy, we will consider Countries that use the…
— Donald J. Trump (@realDonaldTrump) February 17, 2025

Trump added that the U.S. will make provision for any "subsidies provided by Countries in order to take Economic advantage of the United States," that the U.S. was also planning provisions for "nonmonetary tariffs and trade barriers" that other countries may execute against the U.S.

"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," the president continued.

Trump explained that he decided on "reciprocal tariffs," claiming that the U.S. was being "treated unfairly" by other countries, despite reportedly helping them "at great financial cost."

The "reciprocal tariffs" could impact most countries, as currently about 175 utilize the VAT system, according to the Organisation for Economic Co-operation and Development.

Although VATs vary around the world, Trump's proposed "tariffs" could impact the European Union the most, as the average VAT for countries in the union falls at around 22%, as reported by Axios.

Trump's announcement comes after requesting a study on reciprocal taxes, particularly looking at any country that the U.S. does not implement as high of rates on as those countries do for American goods.

While most industrialized countries use the VAT system, the U.S. does not.