US President Donald Trump will unveil a new tariff or ‘reciprocal tariffs’ plan on Wednesday, April 2, in his first Rose Garden press conference of his second term, which he has dubbed “Liberation Day”.
White House press secretary Karoline Leavitt confirmed Monday that the full cabinet will be present for the event, but specifics of the plan remain uncertain as Donald Trump and his administration have floated multiple, sometimes conflicting, proposals in recent weeks.
On Monday, Donald Trump said he would be “very kind” to trading partners when he unveils further tariffs this week, risking global turmoil to address what he says are unfair trade imbalances.
“We’re going to be very nice, relatively speaking, we’re going to be very kind.”
Critics warn that the strategy risks a global trade war, provoking a chain reaction of retaliation by major trading partners such as China, Canada and the European Union. Already, China, South Korea and Japan have agreed to strengthen free trade between themselves.
On Sunday, Donald Trump said reciprocal tariffs would include “all countries” rather than a group of 10 to 15 countries with the biggest trade imbalances, triggering fears that an escalating trade war could lead to a US recession.
Director of Trump’s National Economic Council Kevin Hassett, as reported by CNBC, said in an interview that the US government is looking at 10 to 15 countries that account for America’s “entire trillion-dollar trade deficit”.
While Hassett did not name those countries, data from the commerce department shows that in 2024, the US had the highest goods trading deficit with China, followed by the European Union, Mexico, Vietnam, Ireland, Germany, Taiwan, Japan, South Korea, Canada, India, Thailand, Italy, Switzerland, Malaysia, Indonesia, France, Austria and Sweden.
Donald Trump has repeatedly criticised the high tariffs charged by India and other countries on American goods.
The ‘Dirty 15’ in hot seat
The so-called “Dirty 15” has sparked major debate, with the US keeping a close watch on trade imbalances.
Treasury secretary scott Bessent came up with the term to describe the 15% of economies that contribute the most to America’s trade deficit—all while slapping hefty tariffs and restrictions on US goods.
Who’s on the list?
While Bessent didn’t name names, US department of commerce data for 2024 shows that China tops the chart with a massive $295.4 billion trade surplus with the US other major players include:
- Vietnam – $123.5 billion surplus
- European Union, Mexico, Ireland, Germany, Taiwan, Japan, South Korea, Canada, India, Thailand, Italy, Switzerland, and Malaysia
Nations scrambling to keep the US happy
With fresh US tariffs looming, some of these countries are already making moves to soften the blow.
- India: Sent its commerce and industry minister on multiple US trips to sort out key trade issues. Reports suggest India is open to cutting $23 billion worth of tariffs on American imports.
- Vietnam: Signed a $4 billion energy and minerals deal with US firms, hoping to “balance” trade relations. PetroVietnam Power Corporation even called it “highly meaningful” for job creation.
- South Korea: Its industry ministry has flown to Washington, activating an emergency strategy to negotiate some relief.
- Taiwan: Facing a $26.1 billion trade surplus increase with the US, Taiwan is considering upping energy imports and lowering its own tariffs to keep things balanced.
White House says India charges 100% tariff on agri goods, ‘time for reciprocity’
The White House has said India imposes a 100 per cent tariff on American agricultural products and the high levies charged by other countries make it “virtually impossible” for US products to be exported to those nations.
Karoline Leavitt on Monday said, “Unfortunately, these countries have been ripping off our nation for far too long, and they’ve made, I think, their disdain for the American workers quite clear.”
“If you look at the unfair trade practices – we have 50% (tariff) from the European Union on American dairy and a 700% tariff from Japan on American rice. You have a 100% tariff from India on American agricultural products and nearly 300% from Canada on American butter and cheese,” she said.
Uncertainty continues
Despite the imminent announcement, the Trump administration has not provided clear details on which tariffs will be implemented. Over the past weeks, Trump and his advisers have discussed a range of measures, including reciprocal tariffs on all countries, the delayed enforcement of 25 per cent tariffs on Mexico and Canada, and tariffs targeting lumber, copper, pharmaceuticals, and microchips, reported CNN.
While some officials have suggested that only certain countries will be affected, others, including Trump himself, have indicated that the tariffs might be more flexible. Last week, Trump stated that the tariffs would be “far more generous” than those imposed by other nations on the US.
However, on Air Force One Sunday, he said, “his reciprocal tariffs would be put in place on all countries as a starting point and then he’d negotiate them down if necessary.”
With uncertainty surrounding the details of Trump’s tariff strategy, Wednesday’s announcement will mark a key moment in his economic agenda.
