Washington DC - President Donald Trump has on Saturday revealed in a post on Truth Social that Washington intends to impose levies on countries that use the VAT system.

Trump sees VAT as a tariff on goods and will introduce matching levies to level the playing field in what he sees as greater "fairness" in trade with countries and blocs like the European Union.

VAT, or value-added tax, implements a consumer tax on the value added to products at each point during their production and distribution. It is a widely used system that has been adopted by 175 of the 193 countries in the United Nations, and is utilized by every OECD member country except for the US, which instead uses a state and city-based taxation system.

"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," Trump announced in a post on Truth Social.

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"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 said.

"Sending merchandise, product, or anything by any other name through another Country, for purposes of unfairly harming America, will not be accepted."

Trump went on to claim that the US has been taken advantage of by other countries because there are no tariffs if you manufacture or build in the US, and that provisions will be made for countries willing to negotiate exceptions.

In addition, the president complained that the US has helped many countries throughout the years and, as a result, deserves better trading rules.

"For many years, the U.S. has been treated unfairly by other Countries, both friend and foe," he said. "This System will immediately bring Fairness and Prosperity back into the previously complex and unfair System of Trade."

"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 – A LEVEL PLAYING FIELD FOR AMERICAN WORKERS."