Donald Trump’s “Liberation Day” tariffs are set to come into effect today after the US President announces them in the Rose Garden of the White House. On Sunday, he said that the tariffs will apply to all the nations, and not just a select group of 10-15 countries with the largest trade imbalances.
"You'd start with all countries," Trump told reporters aboard Air Force One. "Essentially all of the countries that we're talking about."
Last month, Treasury Secretary Scott Bessent recently told Fox Business that the administration’s tariff focus would be on 10 to 15 nations with the most significant trade imbalances, though he did not specify which ones.
In his interview on March 18, Bessent singled out what he called the “Dirty 15”, suggesting a narrower focus on a handful of prime targets.
While he did not name the countries, Bessent was referring to the 15% of nations that account for the bulk of US trading volume while imposing hefty tariffs and other “non-tariff barriers” on US goods.
In a subsequent interview on the network, White House economic adviser Kevin Hassett said that the administration is looking at 10 to 15 countries that account for America’s “entire trillion-dollar trade deficit.”
While neither of them named the countries, data from the U.S. Commerce Department's 2024 trade deficit report offers insights into potential candidates. The nations with the largest goods trade deficits with the U.S. include China, the European Union, Mexico, Vietnam, Taiwan, Japan, South Korea, Canada, India, Thailand, Switzerland, Malaysia, Indonesia, Cambodia, and South Africa.
The impending tariffs are part of the Trump administration's strategy to address perceived trade imbalances and to encourage these nations to reduce their trade barriers. Bessent emphasized that there would be no exemptions, stating, "There's what we would call kind of the 'Dirty 15,' and they have substantial tariffs."
The Office of the U.S. Trade Representative, in a notice seeking public comment as part of a review of unfair trade practices to be delivered to Trump by Monday, listed 21 countries in which it is “particularly interested.”
Those include many of the countries in the Group of 20, as well as other “economies that have the largest trade deficits in goods with the United States,” according to the notice.
They are: Argentina, Australia, Brazil, Canada, China, the European Union, India, Indonesia, Japan, Korea, Malaysia, Mexico, Russia, Saudi Arabia, South Africa, Switzerland, Taiwan, Thailand, Turkey, the United Kingdom and Vietnam.
Economists and trade analysts are closely monitoring the situation, as the implementation of these tariffs could have far-reaching implications for global trade dynamics. The targeted countries may respond with their own countermeasures, potentially leading to a series of retaliatory actions that could escalate into broader trade conflicts.
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