1 day ago
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US president Donald Trump
The US President Donald Trump announced that his upcoming
reciprocal tariffs
will affect all countries globally, rather than being limited to 10-15 nations with significant
trade deficits
.
Trump plans to reveal an extensive tariff scheme on Wednesday, which he refers to as "Liberation Day." Previously, he has implemented duties on aluminium, steel, automobiles and increased levies on Chinese imports.
"You'd start with all countries," Reuters quoted Trump telling to reporters aboard Air Force One. "Essentially all of the countries that we're talking about."
The White House economic adviser Kevin Hassett had earlier indicated on Fox Business that the administration would target 10 to 15 countries with substantial trade imbalances, without specifying which nations.
Trump considers tariffs as a protective measure for the domestic economy against
international competition
and as leverage for securing better terms for the United States. However, the possibility of a
trade war
has created market instability and raised concerns about a potential US recession.
Trump intends to implement reciprocal tariffs against nations that impose fees on US exports, matching their duty rates. In February, he signed a directive instructing US trade officials to develop customised counter-measures for each country.
Recently, he indicated potential modifications to his reciprocal strategy, suggesting the possibility of implementing lower tariff rates compared to those imposed by other countries on the United States.
'Dirty 15'
US Treasury Secretary Scott Bessent has called the 15 percent of nations that have trade imbalances with the U.S. the "dirty 15."
The US maintains substantial goods deficits with several trading entities, including China, the EU, Mexico, Vietnam, Taiwan, Japan, South Korea, Canada and India.
As nations seek diplomatic solutions, Greta Peisch, partner at Wiley Rein law firm, suggests it is "entirely possible" that new tariffs could be quickly reduced or suspended.
She referenced a February case where significant duties on Mexican and Canadian imports were temporarily suspended for one month during ongoing North American negotiations.
Peisch, who previously served at the US Trade Representative's office, outlined various potential outcomes: postponements during negotiations, possible reductions, or immediate tariff implementation.
Who are the 'dirty 15' countries?
While the official list remains unpublished, the targeted nations are likely to align with those mentioned in last month's Fedeal Register notice from the US trade representative, which instructed commenters to concentrate on economies showing trade imbalances with America, the Wall Street Journal reported.
The largest goods trade deficits with the United States in the previous year, ranked from highest to lowest, were: China, the EU, Mexico, Vietnam, Taiwan, Japan, South Korea, Canada, India, Thailand, Switzerland, Malaysia, Indonesia, Cambodia and South Africa.
