Donald Trump’s New Tariff Policy: What is “Liberation Day” and which countries will be most affected|
US President Donald Trump has decided to impose new tariffs from 2 April, which he has called “Liberation Day”. These new tariffs will be imposed on those countries which impose excessive taxes on US products or follow such trade rules which are harmful for America.
Now the question arises that which countries will be most affected by Trump’s new policy and what type of new tariffs will be there? Let’s understand in a simple language.
Who is the “Dirty 15”?
US Treasury Secretary Scott Bessent has called 15 such countries “Dirty 15” that impose high tariffs and trade barriers on US products.
These are the 15 countries which have the largest trade deficit with the US:
1 China CN
2 Europen Union EU
3 Mexico MX
4 Vietnam VN
5 Ireland IE
6 Germany DE
7 Taiwan TW
8 Japan JP
9 South Korea KR
10 Canada CA
11 India IN
12 Thailand TH
13 Italy IT
14 Switzerland CH
15 Malaysia MY
Old indications of imposing new tariffs on these countries have been found. But this is not all, the Office of US Trade Representative (USTR) has released a big list which includes 21 countries which follow “unfair trade practices” for the US.
This extended list also includes Russia, Saudi Arabia, Brazil, UK, Turkey and Australia. What will be the new tariffs?
The exact details are not yet available, but some major sectors may be hit by new tariffs.
New tariffs may be imposed on steel and aluminum
New charges on foreign automobiles and spare parts may be imposed from April 4
Extra taxes may be imposed on pharmaceuticals and semiconductors industries
Countries that have a greater trade surplus with the US (countries that sell more) may face new trade barriers.
All these policies will have a direct impact on imports, exports and the world economy.
What changes will Trump’s tariff policy bring?
US local manufacturing and industries will get protection. Countries like India which export their products to the US may suffer losses. Inflation in the US may also increase due to increase in prices of imported goods. What do you say? Will these new tariffs be beneficial for the US economy or can they spoil trade relations with the world? Share your thoughts in the comments.
