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So what you are suggesting is a reverse tariff? Punish local producers for manufacturing goods that we’d rather import.

Well.. that’s an idea.. I suppose..

Then you would just not tax those goods. We already do this with basic foodstuffs; this has nothing to do with tariffs.

VAT doesn't affect free trade in any way though. You're mixing up unrelated concepts.

VAT is never universal, different products already get different rates.