Trump announces new tariffs targeting countries with high VAT on U.S. exports

President Donald Trump announced new tariffs on countries with higher duties or Value-Added Taxes (VAT) on U.S. exports. This move aims to create a level playing field for American manufacturers, as the average VAT in the European Union is 21.8 percent. The tariffs will vary by country and are intended to encourage trade negotiations. Economists warn that these tariffs may lead to higher prices for American consumers and businesses, contradicting Trump's campaign promise to lower costs. Trump's administration has already implemented tariffs on Canada, Mexico, and China. The 10 percent tariff on Chinese products began on February 4, while a 25 percent tariff on steel and aluminum was enacted recently.