United States President Donald Trump has warned of fresh tariffs on countries that charge Value Added Tax (VAT), such as Kenya, which could shake up the country's economic standing. The second-term US president, in a post on X, directed the country's Secretary of State, Secretary of Commerce, Secretary of the Treasury, and United States Trade Representative (USTR) to explore ways and implement tariffs to countries that charge Value Added Tax (VAT) on goods entering the American market citing unfair nature of the VAT system poses on goods imported from the US.
He explained that the tariffs would be a reciprocity to US system of trade. "On Trade, 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 - No more, no less!" Trump averred. "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.
Sending merchandise, product, or anything by any other name through another Country, for purposes of unfairly harming America, will not be accepted," he added.
A photo collage of President William Ruto (left) and US President Donald Trump PCS Kenya charges a standard 16 percent VAT on imported goods from countries such as the US, but exports to these countries are zero-rated. This means imports to Kenya from foreign countries are priced higher locally.
