On Wednesday, April 2, new large-scale trade duties initiated by US President Donald Trump come into force. The White House administration has already declared this day "America's Liberation Day." What to expect from Washington's new customs policy - the correspondent of UNN investigated.
Details
The USA Today reports that a 15% duty will be imposed on all goods from countries that the American administration considers its worst trading partners and which account for almost 90 percent of imports. In addition, Trump announced a 25% duty on all goods from any country that buys oil and gas from Venezuela.
In 2024, the US imported $1.2 trillion more goods than it exported, a record trade deficit that Trump is trying to reduce with his actions.
The US President stated that mutual tariffs compensate for the trade practices of other countries, which his administration considers unfair. At the same time, the White House seeks to encourage companies to produce products in the US to avoid having to pay new duties.
What is "Dirty 15"?
Last week, Treasury Secretary Scott Bessent said that the Trump administration, starting April 2, will apply a mutual tariff number to each country based on what they charge for American exports.
According to him, the most affected will be those 15% of countries that make the largest contribution to the US trade deficit and introduce the highest tariffs.
"There's what we call the 'Dirty 15'. It's 15% of the countries, but it's a huge part of our trade turnover," Bessent said on Fox Business, adding that these countries have significant tariffs and other unfair trade barriers.
The White House has not released a list of the "dirty 15" countries. However, according to the Wall Street Journal , the countries with the largest trade balance deficit with the United States include China, the EU, Mexico, Vietnam, Taiwan, Japan, South Korea, Canada, India, Thailand, Switzerland, Malaysia, Indonesia, Cambodia, and South Africa.
Bessent's remarks suggest that the Trump administration may narrow the scope of reciprocal duties compared to what Trump originally proposed.
What goods will the duties apply to?
And while Trump introduced tariffs on the automotive industry this week, his administration is likely to exclude other industry tariffs that Trump discussed earlier.
This includes 25% tariffs on all imports of semiconductors, microchips and pharmaceuticals, which Trump said he intended to introduce but has not yet done so.
Answering a question on Friday about whether he plans to make exceptions for vital medicines, Trump told reporters on board Air Force One while flying to South Florida: "Well, we'll announce that soon. But we need to bring medicines and pharmaceuticals back to our country."
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Will Trump soften his rhetoric?
Amid growing economic concerns at home and abroad, Trump this week downplayed the scale of tariff rates for other countries. This is a noticeable change in his tone after he had been raising the degree of his intentions for weeks.
Trump announced the introduction of 25% tariffs on all passenger cars and light trucks not manufactured in the United States.
"What we're going to do is impose 25 percent duties on all cars that are not made in the United States. If they are made in the United States, then there is absolutely no tariff," he announced at the White House.
At the same time, Trump stated that in any case, the tariff regime will be soft enough.
"We're going to make it very soft. I think people will be very surprised. In many cases, they will be lower than the tariffs they have been charging us for decades," Trump told reporters in the Oval Office on Wednesday.
White House Press Secretary Carolina Levitt echoed this sentiment on Thursday, telling reporters: "He believes that some of these numbers will be more conservative than many expect."
Reaction of other countries to Trump's duties
The tariffs set by Trump are likely to lead to an escalation of the global trade war that is already unfolding even before its announcement.
Canada and China have responded to the newly introduced US tariffs with corresponding tariffs on American exports, and the European Union has threatened to do the same next month.
Canadian Prime Minister Mike Carney, in response to Trump's introduction of 25% duties on cars, said that the US "is no longer a reliable partner" and promised that his country would try to do more business with other countries.
Cars that fall under the import protection provided by the Agreement between Canada, the United States and Mexico - a trade agreement concluded by Trump during his first term - will not be subject to the full tariff rate. Instead, the US will charge duties only on foreign parts that make up cars imported from Canada and Mexico.
Despite these exceptions, Carney said Canada would announce new tariffs in response next week.
"Nothing is off the agenda as we protect our workers and our country," Carney said.
The leaders of Germany and France also called on the EU to respond with corresponding tariffs.