14.02.2025 09:51
U.S. President Donald Trump signed a presidential order regarding a plan to implement tariffs based on the principle of reciprocity. Trump stated that they would address countries that use a VAT system, and he harshly criticized the European Union for suing American companies, saying, "They are ruthless against us."
U.S. President Donald Trump signed a presidential order regarding a plan to impose tariffs based on reciprocity principles on countries. Trump made a statement after signing the order, which instructed the development of a comprehensive plan against non-reciprocal arrangements in U.S. trade relations.
HE TARGETED COUNTRIES USING VAT
Stating that he decided to implement reciprocal tariffs to ensure fairness in trade, Trump said, "We will apply what countries apply to the U.S." Trump expressed that they would address countries using the VAT system, arguing that this system is much more "punitive" than tariffs. President Trump stated, "VAT will be considered as a tariff." He also mentioned that subsidies provided by countries would be examined and that regulations would be made for non-monetary tariffs.
TARIFFS WILL NOT BE APPLIED IF PRODUCTION IS DONE IN THE U.S.
Trump noted that they could accurately determine the cost of non-monetary trade barriers, stating that U.S. Trade Secretary Nominee Howard Lutnick would present equivalent figures for non-tariff barriers. Trump indicated that countries should reduce or eliminate tariffs against the U.S., adding that if a product is produced in the U.S., no tariff will be applied.
Trump stated, "Many companies will return to produce their products in the U.S. because there will be no tariffs." Emphasizing that the U.S. has been treated unfairly by both friendly and hostile countries for many years, Trump expressed that the plan would bring "justice and prosperity" back to the previously "complex and unfair" trade system. Trump stated that they want equal competitive conditions for all U.S. companies.
"PRICES MAY INCREASE A LITTLE IN THE SHORT TERM"
Indicating that the 25% tariff on steel and aluminum imports would be above this plan, Trump mentioned that tariffs on cars, chips, and pharmaceuticals would also be beyond this plan. In response to questions about whether prices would rise due to tariffs, Trump expressed that he believes employment will increase, prices may rise a little in the short term, but will decrease afterward. Trump reiterated that interest rates will eventually fall, stating that this goes "hand in hand" with tariffs.
"THE EU IS HARSH ON OUR COMPANIES"
In response to a question about whether he has consulted with company executives regarding tariffs, Trump conveyed that many of them are pleased and have said it will make the U.S. prosperous again. Expressing that they are considering tariffs similar to or at the same rate as the VAT they apply to the European Union (EU) as reciprocal tariffs, Trump claimed that the EU has also treated U.S. companies very harshly. Trump recalled that the EU has sued many American companies like Apple, Google, and Facebook and imposed fines, stating, "We all love Europe and the countries in Europe, but the EU is very ruthless in trade." In response to a question about whether there would be any exemptions, Trump explained that reciprocal tariffs would apply to everyone and that this is a simpler way to do it.
"PRODUCTION OF MEDICINES, CHIPS, AND CARS WILL RETURN TO THE U.S."
Trump stated that tariffs on steel, aluminum, and pharmaceuticals would come almost simultaneously and would not be a shock to the system. Arguing that this is much more important than money, Trump noted that he would bring back the production of medicines, chips, and cars to the country. Trump mentioned that the introduction of taxes on steel and aluminum imports has been positively received by executives in the relevant sectors, stating, "US Steel (stocks) are at the top. They are all at the top. That’s why I didn’t want US Steel to make a deal with Japan or anyone else."
Stating that almost all chips are produced in Taiwan, Trump explained that they want these companies to come to the U.S. In response to a question about whether he is concerned that countries affected by tariffs, like India, are shifting their trade to China, Trump expressed that he is not worried about anything and is just doing what is fair. Reiterating tariff threats against BRICS countries, Trump said, "If they want to play with the dollar, they will be hit with a 100% tariff the day they say they want to do that."
WORK ON RECIPROCAL TARIFFS IS PLANNED TO BE COMPLETED BY APRIL 1
U.S. Trade Secretary Nominee Lutnick also explained that they would examine each country individually regarding reciprocal tariffs. Lutnick stated that they plan to complete their work by April 1. Meanwhile, a statement from the White House regarding the reciprocal tariff plan noted that the lack of reciprocity is one reason for the U.S.'s "large and persistent" trade deficit. The statement indicated that the U.S. has run a trade deficit every year since 1975 and that the trade deficit in goods exceeded $1 trillion in 2024, noting that non-reciprocal taxes like the digital services tax cost U.S. companies over $2 billion annually.