President Donald Trump on Thursday signed a presidential memorandum laying out his plan to impose "reciprocal tariffs" on foreign nations.
"They charge us a tax or tariff and we charge them," Trump said during a press event in Oval Office.
The president said that under the plan, the U.S. will treat other countries' non-tariff policies as unfair trade practices that warrant tariffs in response.
Those include value-added taxes, or VATs, and other practices that the office of the U.S. trade representative deems to be unfair trade limitations.
Trump said that foreign countries will not be allowed to send merchandise or other items to the U.S. through another country.
He also suggested that additional tariffs, including on auto imports, are on the way, Reuters reported.
"We want a level playing field," Trump said.
VATs are consumption taxes levied at different stages of a supply chain. They are "trade neutral," the nonpartisan Tax Foundation noted Wednesday in a report accusing the Trump administration of mistakenly blaming VATs for a lack of U.S. competitiveness in Europe.
The reciprocal tariffs will not go into effect immediately. Trump said that Howard Lutnick, his nominee for Commerce secretary, will lead the studies to determine the appropriate tariff levels for each affected country.
Lutnick said in the Oval Office that he expects those studies will be complete by April 1.
In a Truth Social post sent after the event, Trump said his plan will include provisions for "subsidies" and "Nonmonetary Tariffs and Trade Barriers" that other countries employ.
"America has helped many Countries throughout the years, at great financial cost. It is now time that these Countries remember this, and treat us fairly," Trump wrote.
The new tariffs will follow duties Trump has already slapped on China, Canada and Mexico, as well as on imports of steel and aluminum. Trump's tariffs on Canada and Mexico are currently on pause after both countries pledged to crack down on illegal crossings and drug trafficking at their respective borders with the U.S.
As a presidential candidate, Trump floated the possibility of imposing across-the-board tariffs on all U.S. imports. But he also advocated for Congress to pass what he called the "Trump Reciprocal Trade Act," which would empower him to slap tariffs on the goods of any country that has higher tariffs on U.S.-made goods.
Since taking office, Trump has signaled his plans to impose tariffs on the European Union. He has highlighted U.S. trade deficits with European partners and complained that EU nations do not purchase enough American cars or farm equipment.
EU leaders have vowed to retaliate against new U.S. tariffs, while warning that Trump's actions risk sparking a widespread trade war that ultimately hurts everyone.
The new reciprocal tariffs were expected to come before Indian Prime Minister Narendra Modi's visit with Trump at the White House on Thursday afternoon.
— CNBC's Eamon Javers contributed to this report.
