KEY POINTS
- Trump indicated that Japan's "bowling ball test" is an example of "protective technical standards"
- He also said the EU's stance on genetically engineered corn was a form of "protective agricultural standards"
- Some X users raised issue with Trump's stance on VATs as well as his views on the EU's agricultural practices
President Donald Trump has issued what is deemed a warning to countries trading with the United States as he published a "non-tariff cheating" list that he believes are unfair trade practices beyond tariffs.
Trump shared his eight-point plan on his social media platform on Easter Sunday, as countries urgently weigh their options on whether they should secure a trade deal with Washington or, like China and Canada, stand their ground.
Trump hits Japan, EU, in "cheating" list
For the Republican leader, the following practices are a form of "cheating" in trade, even if they don't involve tariffs:
- Currency manipulation
- VATs (value-added taxes), which act as tariffs and export subsidies
- Dumping below cost – an economic term that refers to countries or companies exporting products at lower prices than domestic sale prices
- Export subsidies and other government subsidies
- Protective agricultural standards (e.g., no genetically engineered corn in the EU as per Trump)
- Protective technical standards (Japan's bowling ball test as per Trump)
- Counterfeiting, piracy, and IP (intellectual property) theft (over $1 trillion a year as per Trump)
- Transshipping to evade tariffs
Trump's list, which specifically mentioned some countries and regions, came amid increasing scrutiny over his global tariffs that have been placed under a 90-day pause for most nations, but will take effect early in July.
Even though Trump did not mention China in his post, a 2022 report by cybersecurity firm Cybereason revealed that Chinese hackers have been siphoning trillions in stolen intellectual property from some 30 multinational companies within various industries.
X users take issue with Trump's VAT stance
While some people on Elon Musk-owned X were still trying to figure out Trump's reasoning for posting his list, a growing number of users raised issues with the president's views regarding VATs.
One user asked whether Trump was expecting other countries "to change their VAT systems—a taxation method that doesn't even negatively affect U.S. imports" for his own interests.
"Delusional. And not happening," the user said.
Another user said Trump appeared to have a lack of understanding of VAT.
"No American (or other) exporter company pays VAT in Europe as it is paid and reclaimed by the local sales channels," the user pointed out.
So it is clear, Trump not only does not understand tariffs, but he has no clue what VAT is about: it is paid by the end user/customer. All the companies can reclaim or deduct it. No American (or other) exporter company pays VAT in Europe as it is paid and reclaimed by the local…
— Sowhat? (@KMediaEng) April 20, 2025
Concerns over Trump's agricultural expectations rise
Aside from his seeming demands over VATs, Trump's list is also in question over his views on the European Union's corn practices.
"Forcing countries to drop their food standards is crazy," said one user.
Forcing countries to drop their food standards is crazy. so if genetically engineered corn is okay, then lab grown meat should also be encouraged. Where do we draw the line here ?
— Htmk (@Htmk1111) April 20, 2025
"He thinks he decided what we eat in the EU. Let him go for a walk," said another.
Trump has yet to address concerns around his definitions of unfair international trade.
