Commerce Secretary Howard Lutnick just exposed a method foreign countries have used for decades to cheat the United States in trade. "Some countries have a value-added tax and they take that VAT tax of 20% and they use it to subsidize the production of their domestic industries. That's why... we can't sell cars there because they give a rebate." And these countries have the gall to act shocked that the United States is finally acting.show more

Lutnick’s spot-on. For decades, foreign VAT schemes have rigged trade against US industries. Take China: they slap a 20% VAT on imports but rebate it for exports, subsidizing their own while pricing out American goods. The Import Security and Fairness Act (H.R. 322) finally cracks down on this by blocking de minimis loopholes that let foreign adversaries flood our markets tax-free. It’s not just cars—steel, tech, agriculture all get undercut by these predatory tactics. The previous admin let this rot fester. Now, policies are shifting to penalize trade cheats and prioritize US manufacturing. Realignment’s overdue.

Here’s what could get more expensive with Trump’s new tariffs.

And people have the audacity to scream and yell about these tariffs! This is us finally getting into a fair market

This is interesting. To summarize: Lutnick said we’ve been talking to the ministers of these countries for at least a month about that this was going to happen. The VAT of 20% used to subsidize the production of their industries. They give a rebate directly to their car manufacturers. They give cheap energy costs to the industry. That's why we can't compete. The non-tariff trade barriers are the monster that needs to be slayed.

Exactly why we need Trump back fixing these trade deals. America first means no more getting ripped off by globalists. Great point.

im sorry but this is utter nonsense. VAT is charged on everyone including producers. its not subsidize anyone. and US also has a sales tax. same thing different name

This man obviously has no idea how VAT works.

@realkarenjean Team Trump knows what all the non-tariff barriers are, and I suspect they’ll treat the trade-cheaters on a case-by-case basis, calling them out on their cheats.

It's actually against EU law to subsidise industries. It creates imbalances in the single market competition. The single market rules between 27 countries are sacrosant.

That is nonsense; VAT is charged equally on domestic and foreign produced goods and at the same rates on goods irrespective of National of origin (here in UK at least!)

Lmfao. I’m betting Trump will have to roll back the tariffs.