Trump announces plan for reciprocal tariffs on all US trading partners

“I will charge a RECIPROCAL Tariff meaning, whatever Countries charge the United States of America, we will charge them — No more, no less!,” he posted on Truth Social. “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.”

Related: Machinists union: Tariffs on Canadian metals a ‘gut punch’ to workers

While not singling out any nation during his announcement, the plan could be targeting the European Union in response to its value-added tax (VAT), which applies to all products and is viewed by the Trump administration as a nontariff barrier.

“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 posted on Truth Social.

Critics of tariffs say they could raise prices for American consumers. Trump has said he sees tariffs as a tool for leverage in trade negotiations, and for bringing companies and jobs back to the U.S.

While Trump has threatened several nations with tariffs, so far China is the only country to be hit with increased duties. Trump went forward with a 10% tariff on imports from China on Feb. 1.

On Feb. 3, Trump agreed to pause 25% tariffs on Mexico and Canada after leaders of those countries promised to strengthen border security.

Trump’s plan to impose reciprocal tariffs could be disruptive to the global supply chain, according to David French, executive vice president of government relations at the National Retail Federation.

“While we support the president’s efforts to reduce trade barriers and imbalances, this scale of undertaking is massive and will be extremely disruptive to our supply chains,” French said in a news release. “It will likely result in higher prices for hardworking American families and will erode household spending power. We encourage the president to seek coordination and collaboration with our trading partners and bring stability to our supply chains and family budgets.”