**Washington**: President Donald Trump has introduced a reciprocal tariff policy aimed at addressing trade imbalances with nations like China, the EU, and Mexico, raising concerns over its impacts on global trade dynamics as countries respond with strategies to mitigate these changes.
President Donald Trump has enacted a “reciprocal tariff” policy aimed at addressing perceived unfair trade imbalances between the United States and its trading partners. The strategy, which has raised concerns about its potential impact on global trade, seeks to rectify the situation where the US imports significantly more goods than it exports.
While specific details of the import taxes remain unclear, certain nations are anticipated to be more adversely affected than others. The term “Dirty 15,” coined by Treasury Secretary Scott Bessent, describes the 15% of the economy that contributes disproportionately to the trade imbalances, often imposing steep tariffs and non-tariff barriers on American goods. Although Bessent did not explicitly list these nations, data from the US Department of Commerce indicates that China presents the largest trade surplus with the US, amounting to approximately $295.4 billion in 2024.
Other notable trading partners with substantial trade surpluses include the European Union, Mexico, and Vietnam, alongside countries such as Ireland, Germany, Taiwan, Japan, and South Korea. These nations have reportedly taken steps to mitigate the impending tariff changes. For instance, Vietnam, with a trade surplus of $123.5 billion with the US, forged a $4 billion energy and mineral agreement with US companies during a recent visit by its trade minister to Washington. The PetroVietnam Power Corporation has stated that this agreement aims to foster balanced trade and create numerous jobs in both nations.
India’s Minister of Commerce and Industry has also made several visits to the US to engage in discussions on key trade issues. Reports indicate that India may consider reducing US import tariffs by as much as $23 billion. Additionally, South Korea has mobilised its Ministry of Industry to seek support in Washington, employing an emergency strategy to respond to the tariffs.
Furthermore, Taiwan’s trade surplus with the US grew by $26.1 billion, prompting the government to contemplate various responses to potential new tariffs. These could include increasing energy imports from the US and reducing its own tariffs in an effort to balance the bilateral trade relationship.
As these developments unfold, the ripple effects of the reciprocal tariff strategy have the potential to reshape trade dynamics not only between the US and its selected partners but also across the global marketplace.
Source: Noah Wire Services
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