United States President Donald Trump, on Monday (Feb 17), outlined his latest trade policy centred on fairness and reciprocity, aiming to level the playing field by implementing reciprocal tariffs. 

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This means that other countries will be charged the same tariffs they impose on American goods, effectively mirroring their trade policies.

The US president highlighted that the move would address unfair trade practices by other countries, which include non-monetary barriers, subsidies, and VAT systems, while also encouraging foreign countries to either reduce or eliminate tariffs against Washington.

Trump, in a post on X, said, "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!"

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"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. Sending merchandise, product, or anything by any other name through another country, for purposes of unfairly harming America, will not be accepted. In addition, we will make provision for subsidies provided by countries in order to take economic advantage of the United States," he added.

He further highlighted that such provisions will also address Nonmonetary Tariffs and Trade Barriers.

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"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 US businesses operate. 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," his post read.

He then stated that for many years, the US was treated "unfairly" by other countries and that this move would instantly "bring fairness and prosperity back into the previously complex and unfair System of Trade."

(With inputs from agencies)