Trump plans to treat countries with VAT as imposing tariffs

Former President Trump announced plans to treat countries with value-added tax systems as if they impose tariffs. He stated that sending goods through other countries to avoid tariffs will not be allowed. Trump also mentioned the introduction of reciprocal tariffs and non-monetary tariffs, which may include trade limitations and vehicle testing. He indicated that his team will calculate equivalent numbers for these non-tariff barriers. He noted that other countries could lower or eliminate their tariffs. Trump claimed the European Union has reduced car tariffs to 2.5%, calling it a significant achievement. The euro initially fell following these announcements.