In his joint address to American Congress early March 2025, Donald Trump revealed the plan to enforce reciprocal tariffs on April 2nd (he originally wanted it on April 1st but superstitiously tried to avoid the April Fool’ day). “The European Union, China, Brazil, India, Mexico and Canada and countless other nations charge us tremendously higher tariffs than we charge them. It's very unfair”. After reciprocal tariffs kick in, “whatever they tax us, we will tax them”, he stated.
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| Port of Los Angeles - the largest seaport in the USA, handling nearly 10 million TEUs each year. |
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Trump explained to his viewers on how he believed the USA has been treated unfairly for decades in terms of trade: “India charges us auto tariffs higher than 100%, China's average tariff on our products is twice what we charge them. And South Korea's average tariff is 4 times higher while we give so much help militarily”.
“If they do non-monetary tariffs to keep us out of their market, then we will do non-monetary barriers to keep them out of our market”. If so, the recent action by the Premier of Ontario Province to cancel Elon Musk’s Starlink Contract and ban all U.S. companies from government contracts may be seen as non-monetary barriers and Trump’s Administration would likely to enforce similar retaliatory measures.
Previously, the American President once mentioned that Value-Added Tax (VAT) should be also be counted as a kind of tariffs. It’s still how the Trump Administration would eventually approach this matter when considering reciprocal tariffs on countries applying a VAT system.
To assure the trust of the American people on the tariffs path he is taking on, Trump said “Tariffs are about making America rich again and making America great again. […] There'll be a little disturbance but we're okay with that. It won't be much”.
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