Trump’s ‘Liberation Day’ tariffs: What are ‘Dirty 15’ nations that will be most hit? Is India among them?

United States President Donald Trump is preparing to announce what is expected to be the most expansive set of tariffs yet under his administration, with April 2 being labelled as America’s “Liberation Day.”

This initiative is designed to impose “reciprocal tariffs” on countries that maintain high tariffs on US goods or implement other restrictive trade policies deemed unfair by the White House.

While the administration has not disclosed all details of the plan, it is clear that certain nations will face a harsher impact than others.

The announcement comes amid Trump’s long-standing criticism of global trade policies, which he argues have allowed other countries to take unfair advantage of the United States.

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“You’d start with all countries, so let’s see what happens,” Trump told reporters, pointing out that there is no predetermined limit on the number of affected nations.

However, administration officials have hinted that the primary targets will be a select group of countries with significant trade imbalances with the US.

Who are the ‘Dirty 15’?

US Treasury Secretary Scott Bessent has referenced a group of nations termed the “Dirty 15,” describing them as the 15 percent of US trading partners that impose steep tariffs and other trade barriers on American goods.

While Bessent did not specify which countries fall into this category, economic data provides insight into the most likely candidates.

The US Commerce Department’s 2024 trade deficit data shows that America had the highest goods trade deficits with China, followed by the European Union, Mexico, Vietnam, Ireland, Germany, Taiwan, Japan, South Korea, Canada, India, Thailand, Italy, Switzerland, Malaysia and Indonesia.

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These countries collectively account for the majority of the US trade imbalance and are therefore widely believed to be at the forefront of the new tariff measures.

The Office of the US Trade Representative (USTR) has also identified 21 nations that warrant particular attention in reviewing unfair trade practices.

This expanded list includes Argentina, Australia, Brazil, Canada, China, the European Union, India, Indonesia, Japan, South Korea, Malaysia, Mexico, Russia, Saudi Arabia, South Africa, Switzerland, Taiwan, Thailand, Turkey, the United Kingdom and Vietnam.

While the “Dirty 15” designation has been widely discussed, Trump’s recent comments suggest that a broader range of nations could be affected.

How are nations planning to respond?

The prospect of widespread tariffs has already triggered responses from key trading partners. Canada and China have indicated they will impose retaliatory tariffs if affected, while the European Union has announced plans to introduce countermeasures by mid-April.

European Central Bank President Christine Lagarde commented on the situation, telling France Inter radio, “He calls it ‘Liberation Day’ in the United States. I see it as a moment when we must collectively decide to take greater control of our destiny.”

Meanwhile, Indian officials have reportedly discussed lowering certain tariffs in an attempt to mitigate the impact of the new measures.

Other nations, including Mexico and South Korea, are also weighing their options as they prepare for potential economic consequences.

What tariffs will be imposed?

The specific tariffs will vary by country and industry. Trump has previously implemented blanket tariffs on steel and aluminium, levies on foreign automobile imports, and sector-specific tariffs on Chinese goods.

The new measures could include additional sector-specific duties, particularly in industries such as pharmaceuticals and semiconductors.

Auto tariffs are also expected to increase, with the administration set to introduce new levies on foreign cars and automotive parts starting April 4.

White House officials have suggested that each country’s tariff rate will be determined based on its existing trade practices. This means that nations with particularly high tariffs or stringent non-tariff barriers on US goods may face the steepest penalties.

Administration officials have reportedly been working to tailor the tariffs to account for factors such as domestic tax policies, product safety regulations, and other trade restrictions.

What concerns do businesses have?

While Trump’s tariffs have been framed as a measure to revitalise American industry, they have sparked concern among various business sectors.

Domestic steel manufacturers and labour unions have largely supported previous tariff hikes, viewing them as a means to protect American jobs. However, the automotive industry has warned that higher tariffs could lead to increased costs and supply chain disruptions.

The American Automotive Policy Council, which represents major US carmakers such as Ford, General Motors, and Stellantis, has cautioned that additional tariffs could drive up vehicle prices and negatively impact production.

A report by economist Arthur Laffer noted that 25 percent auto tariffs could significantly raise US vehicle costs and disrupt supply chains. The council has urged for “a fair and predictable trade environment.”

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Similarly, agricultural producers have voiced concerns over retaliatory measures that could affect US exports. The International Fresh Produce Association issued a letter warning that both the proposed tariffs and expected counter-tariffs could destabilise American farmers and agribusinesses.

Economists argue that trade deficits are not inherently detrimental to an economy, as they often reflect strong consumer demand.

The US Chamber of Commerce has maintained that persuading other countries to lower their tariffs is a more effective approach than imposing reciprocal duties. “The overall US trade deficit is not the result of foreign trade barriers,” the Chamber stated in written comments to the USTR.

Why only the “Dirty 15”?

Trump’s focus on eliminating trade deficits was a central theme of his 2024 campaign, and his administration has worked aggressively to implement measures that reflect this goal.

Initially, Trump had proposed imposing tariffs on all US imports, but practical and legal concerns led to a more targeted approach.

According to sources familiar with internal White House discussions, officials worried that imposing duties on all imports simultaneously would be logistically unfeasible, reported The Washington Post. As a result, the administration opted to concentrate on a specific subset of trade partners, leading to the “Dirty 15” strategy.

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Foreign governments are now bracing for the impact of the new tariffs, with some seeking to negotiate exemptions or reductions.

The European Union has already delayed implementing its retaliatory tariffs until mid-April, suggesting that diplomatic efforts may still influence the final outcome.

Meanwhile, China is expected to respond forcefully, having previously countered Trump’s trade policies with its own measures on American goods.

With inputs from agencies