The president says the VAT system used across Europe gives other countries unfair trade advantages. Here’s how the system started.

President Donald Trump could go after “value-added tax” schemes used throughout Europe as he ramps up tariffs threats against the rest of the world. Such an approach would vastly expand the definition of what is considered a trade barrier,

While a sales tax is paid in full by the consumer at the point of sale, a value-added tax is collected as the product moves through the supply chain. To borrow an example from The

President Trump on Thursday directed federal agencies to study reciprocal tariffs aimed at matching taxes and other economic barriers used by trade partners. His newly issued memorandum cited value-added taxes,