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Trump announces reciprocal tariffs in Truth Social post amid trade policy overhaul

President Donald Trump wrote a lengthy Truth Social post about his trade policy overhaul on Saturday, emphasizing his plans to charge reciprocal tariffs to countries that the U.S. does business with.

In a post published Saturday afternoon, Trump explained how his reciprocal tariffs will work in a great amount of detail. In recent weeks, he has announced 25% tariffs on all aluminum and steel imports into the U.S., plus 25% tariffs on imports from Canada and Mexico and a 10% tariff on imports from China.

His recent move to implement reciprocal tariffs was decided “for purposes of Fairness,” Trump wrote.

“For purposes of this United States Policy, we will consider Countries that use the VAT [value-added tax] System, which is far more punitive than a Tariff, to be similar to that of a Tariff,” Trump wrote. “Sending merchandise, product, or anything by any other name through another Country, for purposes of unfairly harming America, will not be accepted.”

RED STATE AG PROMISES LEGAL FIGHT WITH ICE-RESISTING LOCAL GOVERNMENTS

President Donald Trump speaks to reporters in the Oval Office of the White House, where he signed an executive order, on Thursday, Feb. 13. (AP/Ben Curtis)

Most countries use a VAT system, including the United Kingdom, China and Mexico. Trump added that he will make provisions “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,” the president added. “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.”

THIRD JUDGE BLOCKS TRUMP BIRTHRIGHT CITIZENSHIP ORDER

President Donald Trump speaks in the East Room of the White House, Wednesday, Feb. 5, 2025, in Washington. (AP Photo/Alex Brandon)

Trump concluded his post by claiming that the U.S. “has been treated unfairly by other Countries, both friend and foe.”

“This System will immediately bring Fairness and Prosperity back into the previously complex and unfair System of Trade,” the Republican continued. “America has helped many Countries throughout the years, at great financial cost. It is now time that these Countries remember this, and treat us fairly – A LEVEL PLAYING FIELD FOR AMERICAN WORKERS”

“I have instructed my Secretary of State, Secretary of Commerce, Secretary of the Treasury, and United States Trade Representative (USTR) to do all work necessary to deliver RECIPROCITY to our System of Trade!”

Earlier this week, Trump promised that U.S. will be “flooded with jobs” as foreign trading partners are incentivized to move their businesses to American soil – despite his tariffs being fiercely criticized in recent weeks.

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President Donald Trump speaks during the National Prayer Breakfast at Washington Hilton, Thursday, Feb. 6, 2025, in Washington. (AP Photo/Evan Vucci)

“They can build a factory here, a plant or whatever it may be, here,” Trump said Thursday afternoon from the Oval Office. “And that includes the medical, that includes cars, that includes chips and semiconductors. That includes everything. If you build here, you have no tariffs whatsoever. And I think that’s what’s going to happen. I think our country is going to be flooded with jobs.”

Fox News Digital’s Emma Colton contributed to this report.

Andrea Margolis is a writer for Fox News Digital and Fox Business. Readers can send story tips to [email protected].

February 15, 2025
LARRY KUDLOW: The markets applaud Trump’s reciprocal tariffs

Today, President Donald Trump expanded on his fair and reciprocal trade policy that is aimed at creating a level playing field for American workers and businesses — and will hopefully deal with the many unfair trading practices around the globe that are aimed at the United States.

He is using a simple metric: if you tax us, we’re going to tax you. But, if you lower your tax on us, then we’ll gladly lower our tax on you.

Actually, President Trump sees this as a road to free trade.

And taxes are really tariffs. So, one place the President singled out was the European Union for their nearly 20% value added tax (VAT), which, yes, functions as a tariff.

Plus, they have across the board tariffs that are much higher than ours. On that score, President Trump singled out the 10% European auto tariff, which is four times America’s 2.5%. That’s on top of the 20% VAT. Of course, that’s patently unfair.

And there are country-wide examples galore: India has six times the tariff rates that we do, Mexico three times, China nearly five times, Brazil six times.

President Donald Trump signs new executive orders on reciprocal tariffs from the Oval Office.

The world trading system has been broken for over 25 years. And most countries have taken advantage of America by aiming their trading barriers at us.

There is no international court to fix it. The World Trade Organization is a bust and is also corrupt, in bed with China.

So, President Trump’s going to try and fix this by applying a reciprocal tariff benchmark. It seems like a fairly straightforward metric.

At this point, we don’t know exactly how far the policy will go. Nor do we know how much in tariff revenues will be raised. These are important questions yet unanswered.

In today’s presser, Mr. Trump used a very moderate, low-key approach.

He wasn’t really bashing anybody, and he focused most of his remarks on how the industrial heartland and our whole economy will become bigger and more productive as a result of his reciprocity-based level playing field goal.

Heritage Foundation economist E.J. Antoni, former World Bank president David Malpass, and Sen. Kevin Cramer, R-S.D., weigh in on President Donald Trump’s reciprocal trade policy on ‘Kudlow.’

The stock market rose nearly 400 points on the news. No actions will be taken until April 1st, after a review led by Commerce Secretary Howard Lutnick.

Reporters keep nagging President Trump about inflationary tariffs. But they are wrong.

Foreign exporters will bear the largest burden, because they will be forced to cut their prices in order to sell in America. Plus, the export country currency will fall, while the U.S. dollar will rise.

And, if the European Union – or whoever – lower their tariffs, our consumer prices will go down.

That’s all counter inflationary.

All that said, I strongly support trade reciprocity. It is a noble mission.

Next up, I’d really like to see the President start talking up tax cuts, jobs, middle-class wages, and rapid economic growth.

Let’s not forget the growth message.

February 13, 2025
What could Trump’s reciprocal tariffs look like?

The Lonski Group President John Lonski breaks down President Donald Trump’s economic agenda during an appearance on ‘Varney & Co.’

President Donald Trump on Thursday signed an executive order imposing reciprocal tariffs on U.S. trading partners, effectively raising duties on imports to match those levied on America’s exports.

“Today is the big one: reciprocal tariffs,” Trump wrote on his social media platform, Truth Social, ahead of the announcement. His executive order starts a process that could lead to reciprocal tariffs being imposed within weeks after the White House’s trade and economic team studies America’s trading relationships, an official told reporters on a conference call.

The Trump administration aims to complete its trade review by April 1 and plans to target what it calls the most “egregious” issues first, including countries with large trade surpluses with the U.S. and the highest tariff rates on American goods. The president’s tariffs would match other countries’ higher tariff rates and aim to counter other trade barriers like burdensome regulations, value-added taxes, government subsidies and exchange rate policies and to negotiate with some countries to reduce those barriers.

A new analysis by Goldman Sachs economists led by Jan Hatzius looked at how the reciprocal tariffs could work and found that they would likely increase the average tariff levied on imports to the U.S., though they could help reduce trade uncertainty as well.

TARIFFS COULD FACTOR INTO FED’S RATE-CUT PLANS AMID INFLATION CONCERNS, EXPERTS SAY

President Donald Trump is planning to roll out a plan for reciprocal tariffs on U.S. trading partners. (Jim Watson/AFP via Getty Images / Getty Images)

“If applied at the product-specific level (e.g., the U.S. tariff on cars from the EU would equal the same rate the EU applies on cars from the U.S.), the U.S. weighted average tariff rate might rise by about 2 [percentage points], we estimate. If applied at the country level, the effect could be smaller,” the Goldman economists wrote.

“While a reciprocal tariff policy poses risks, it is also possible that it could incrementally reduce trade policy uncertainty once announced.

VOTERS REJECT TRUMP’S TARIFF PUSH; MOST BELIEVE POLICY WILL HURT ECONOMY

“President Trump’s comments suggest that he views this policy as an alternative to the 10-20% universal tariff he has discussed in the past,” the economists wrote. “If U.S. tariffs are set to match foreign tariff rates, it would theoretically make it less likely that U.S. tariffs would rise substantially further. It might also ultimately lead some trading partners to reduce tariffs (and theoretically a reduction in U.S. tariffs as well).”

They also said there are risks related to reciprocal tariffs in the event the Trump administration attempts to equalize non-tariff barriers (NTBs) to trade, which they note are “difficult to quantify but could result in a greater increase.”

“The main risk is that the Trump administration could consider value-added taxes (VATs) in the calculation, which would raise the average effective tariff rate by 10pp further,” the economists wrote. “However, while President Trump has criticized VATs in some countries, there is no indication at this point that the reciprocal tariff policy he plans to announce would include VATs in the calculation.”

Reciprocal tariffs would equalize U.S. tariffs on imports with those faced by American exporters overseas. (Reuters/Carlos Barria / Reuters Photos)

While the reciprocal tariffs may be the latest step in Trump’s efforts to reshape U.S. trade policy, the report noted that there will likely be further developments as the president’s term progresses.

“Of course, even if President Trump views reciprocal tariffs as an alternative to more sweeping measures at the moment, we are entering only the fourth week of a four-year presidential term, and it seems likely there may be many further tariff announcements even if he does announce reciprocal tariffs this week,” the Goldman economists noted.

TRUMP TARIFFS PROMPT WARNINGS FROM TRADE GROUPS

Tariffs are taxes on imported goods or services. (Reuters/Mike Blake / Reuters Photos)

Kevin Hassett, director of the National Economic Council, told reporters Wednesday “reciprocal tariffs are absolutely a high priority for the president and have been forever” and signaled that discussions about them had begun with foreign trading partners.

“Our trading partners charge us way more in tariffs than we charge them. And it’s something he talked about before, and there’s going to be a lot more action on it today. We even started to have negotiations with other countries,” he said.

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Hassett was asked what the negotiations with other countries have entailed and replied, “We were just laying the groundwork for discussions over reciprocal trade.”

He added that Howard Lutnick, Trump’s nominee to be commerce secretary, led those meetings.

FOX Business’ Kristen Altus and Reuters contributed to this report

February 13, 2025
Trump announces reciprocal tariffs for ‘purposes of fairness’

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President Donald Trump announced Thursday that the U.S. is implementing “reciprocal” tariffs against countries that tax or limit markets for American goods.

“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. In other words, they charge us a tax or tariff and we charge them the exact same tax or tariff. Very simple,” Trump said at the White House.

President Donald Trump signs a series of executive orders in the Oval Office at the White House on Feb. 10. (Andrew Harnik/Getty Images / Getty Images)

“In almost all cases they are charging us vastly more than we charge them, but those days are over,” Trump added.

A source familiar with the plans told FOX Business that Trump will sign a presidential memorandum ordering the U.S. Trade Representative to investigate and counter non-reciprocal trade across all trading partners. The representative will identify trade agreements where there are significant trade deficits that are unfair to the U.S.

Mentioned in the memo — according to the source — is that Brazil taxes US ethanol at 18% while the US taxes ethanol imported from Brazil at just 2.5%.

FOX Business’ Hillary Vaughn contributed to this report.

This is a developing story. Please check back for updates.

February 13, 2025
White House economist says reciprocal tariff negotiations with other countries underway

National Economic Council director Kevin Hassett analyzes the impact of President Donald Trump’s tariffs on ‘Kudlow.’

National Economic Council director Kevin Hassett indicated that conversations with “other countries” on reciprocal tariffs are ongoing, telling the press that it remains a “high priority” for President Donald Trump.

“Reciprocal tariffs are absolutely a high priority for the president, [they] have been forever. You know, our trading partners charge us way more in tariffs than we charge them. And it’s something he talked about before,” Hassett said in a White House press gaggle Wednesday morning.

“And there’s got to be a lot more action on it today,” he continued. “We even started to have negotiations with other countries. Early this morning I was doing that.”

Trump’s 25% tariffs on Mexico and Canada could take effect next month after both countries were granted a 30-day pause; the U.S. and China have enacted reciprocal across-the-board 10% tariffs as a phone call looms between Trump and Chinese President Xi Jinping; and just this week, Trump announced 25% tariffs on aluminum and steel imports.

TRUMP IS PLAYING A DANGEROUS TARIFF GAME DESPITE HIS ‘REALLY STRONG’ AGENDA, U.S. ECONOMIST WARNS

Tariffs are taxes levied on imported goods and services. While they historically played a more significant role in contributing to federal tax revenue, developed countries have moved away from relying on tariffs as a main source of funding and have shifted to other forms of taxes – such as income, payroll or sales taxes.

White House National Economic Council director Kevin Hassett indicated that reciprocal tariff negotiations are ongoing with “other countries.” (Getty Images)

In the U.S., tariffs are collected by the Customs and Border Protection (CBP) agency, which is a subagency of the Department of Homeland Security. Trump has proposed creating an “External Revenue Service” that would be responsible for collecting tariffs, though it’s unclear whether that plan will move forward.

U.S. Treasury Secretary Scott Bessent addresses President Donald Trump’s economic and fiscal goals during his first interview on ‘Kudlow’ since joining the administration.

President Trump has also discussed using tariffs to take the U.S. economy back to its “golden age,” potentially eliminating the federal income tax and predominantly supporting government spending with tariffs.

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MonetaryMacro.com CIO Joseph Wang argues President Donald Trump’s tariffs on Canada and Mexico are more than just a negotiating tactic on ‘Making Money.’

“We were talking about just laying the groundwork for discussions over reciprocal trade,” Hassett said further of Wednesday’s alleged meetings. “The person leading those discussions today was Howard Lutnick, of course. But I was on those calls too.”

It’s all “a work in progress,” Hassett added. “Everybody’s talking about it right now. And actually, the conversations with other countries began this morning really early… You might see an announcement about progress or also guidelines of the things that [Trump’s] thinking after having some exchanges of views with foreign people today and yesterday. It’s more of an outline.”

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FOX Business’ Eric Revell contributed to this report.

February 13, 2025