(The Epoch Times)—President Donald Trump’s administration is working to address trade imbalances with a group of 15 top trading partners.
When the president’s trade saga commenced this year, White House officials coined the term “Dirty 15” to describe a group of nations identified as having significant surpluses with the United States.
By grappling with multibillion-dollar trade deficits and various trade barriers, the Trump administration is signaling a broader realignment in international trade.
Ahead of the Aug. 1 reciprocal tariff deadline, many of these countries are scrambling to intensify negotiations, seek exemptions or reductions, and reach trade agreements.
Here is the state of trade with these foreign markets.
China
This month, the White House announced that it reached a limited deal with China, putting together an agreement on tariffs and export controls.
The Chinese regime agreed to resume rare earth exports to the United States, and the current U.S. administration rolled back countermeasures.
Artificial intelligence chipmaker Nvidia stated on July 14 that the U.S. government has agreed to grant the tech titan licenses to sell chips to China.
Treasury Secretary Scott Bessent said in a July 15 interview with Bloomberg Television: “It was all part of a mosaic. They had things we wanted. We had things they wanted, and we’re in a very good place.”
Global financial markets are closely watching a key date, Aug. 12, which will be the end of a 90-day tariff pause between the world’s two largest economies.
But Bessent said he is unconcerned.
“I tell market participants not to worry about Aug. 12,” he said.
Bessent has plans to meet with Chinese Vice Premier He Lifeng in the coming weeks.
According to the U.S. Trade Representative’s Office, the U.S. goods trade deficit with China was $295.4 billion in 2024.
Mexico
Trump will implement a 30 percent tariff on goods imported from Mexico.
“Mexico has been helping me secure the border, but what Mexico has done, is not enough,” Trump wrote in a letter to Mexican President Claudia Sheinbaum.
He also said that if Mexico raises tariffs, the United States will add an amount equal to that increase to the 30 percent rate.
Mexican officials confirmed in a statement shortly after the letter was posted to social media platform Truth Social that a delegation had met with U.S. officials to discuss trade and was informed of the new tariff rate.
“We stated at the meeting that this was unfair treatment and that we disagreed,” the statement reads. “It is very significant that starting July 11, we established the necessary pathway and forum to resolve any possibility of new tariffs taking effect on Aug. 1.”
In 2024, U.S.–Mexico trade totaled nearly $840 billion, with the United States running a deficit of $171.8 billion.
On July 14, the Commerce Department announced a 17 percent antidumping duty on most fresh tomato imports from Mexico. The move could cause disruptions because Mexico supplies about two-thirds of the U.S. tomato market.
Vietnam
Earlier this month, Trump confirmed that he reached a trade agreement with Vietnam.
According to the president, Vietnam will pay a 20 percent tariff “on any and all goods sent into” the United States and a 40 percent tax on any transshipping. In exchange, U.S. goods exported to Vietnam will be subject to no tariffs.
“Dealing with General Secretary To Lam, which I did personally, was an absolute pleasure,” Trump said on Truth Social.
Although the deal was centered on Vietnam, the agreement also applies economic pressure on China and the issue of transshipping. This practice involves rerouting Chinese goods to Vietnam, where they are repackaged or relabeled and then exported to the United States.
European Union
In a letter to European Commission President Ursula von der Leyen, Trump said he would impose a 30 percent tariff on goods entering the United States from the European Union.
Economists say member states Germany, Ireland, and Italy would be severely affected.
Last year, the U.S. goods trade deficits with Germany and Ireland were firmly above $80 billion. The trade gap with Italy was close to $44 billion in 2024.
“Donald Trump’s letter to the EU is not a love letter but also not a hate letter,” ING economists said in a July 13 research note. “It’s a letter to increase pressure in the ongoing negotiations. The next days and weeks will tell whether Europe is willing and able to compromise to the U.S. liking.”
EU leaders say 30 percent tariffs on “exports would disrupt essential transatlantic supply chains” and adversely affect businesses and consumers on both sides of the Atlantic Ocean.
Although the 27-member bloc is prepared to establish a trade agreement by Aug. 1, Von der Leyen said in a statement, “We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”
Taiwan
Taiwan has not received a formal tariff letter from Trump and remains under a temporary blanket 10 percent levy. If a deal is not reached between the two sides, the tariff on Taiwan could climb to 32 percent.
The U.S. goods trade gap with Taiwan was nearly $74 billion last year, up by more than 54 percent from 2023.
Japan
Starting on Aug. 1, the United States will impose a 25 percent tariff on all Japanese imports. This is in addition to the current sector-specific levies, such as 50 percent on steel and aluminum and 25 percent on automobiles and car parts.
Japanese Prime Minister Shigeru Ishiba said at a Cabinet meeting this month that progress had been made on trade negotiations.
“We have received a proposal from the United States to swiftly proceed with negotiations toward the newly set Aug. 1 deadline, and … depending on Japan’s response, the content of the letter could be revised,” Ishiba stated on July 7.
Trump has been highly critical of Japan’s trade practices, recently pointing to the country’s rice crisis.
“They and others are so spoiled from having ripped us off for 30, 40 years that it’s really hard for them to make a deal. You know, it’s very hard,” he said to reporters aboard Air Force One. “As an example, with Japan, they won’t take rice, and yet they desperately need rice. They won’t take any cars, but they’ll sell millions. So we told them, ‘Sorry, you can’t do that.’”
The U.S. goods trade deficit with Japan was $68.5 billion in 2024, down by more than 4 percent from 2023.
South Korea
South Korea will also face a 25 percent tariff if it cannot put together a deal with the U.S. administration. Officials in Seoul stated that they plan to bolster trade negotiations, noting that talks must include exemptions or reductions in auto and steel tariffs.
Speaking to reporters in Maryland on July 13, Trump said that the country “wants to make a deal right now.”
The U.S. trade deficit with South Korea totaled $66 billion in 2024, up by more than 29 percent from 2023.
South Korea was late to the negotiating table because the government was going through an election.
Canada
Canadian Prime Minister Mark Carney received a letter from Trump and was informed that a 35 percent tariff would be imposed on goods coming from Canada.
The president alluded to the fentanyl crisis and protectionist measures such as Canada’s dairy import rules.
Officials north of the border have said they need to ensure that Canadian businesses and workers are shielded from the adverse effects of Trump’s levies.
“In the face of President Trump’s latest threat, we need to come together. We need a plan on how Canada will respond and how we’ll protect our workers, businesses and communities,” Ontario Premier Doug Ford said on social media platform X.
On his way to a Cabinet meeting in Ottawa, Carney told reporters that most countries will likely face baseline tariff rates. Still, according to the prime minister, U.S.–Canada trade discussions will intensify ahead of next month’s deadline.
“At the same time, we need to recognize that the commercial landscape globally has changed,” he said. “It has changed in a fundamental manner, and we will continue to focus on what we can most control, which is building a strong Canadian economy.”
This comes after Statistics Canada reported that the annual inflation rate rose to 1.9 percent in June from 1.7 percent in May. Core inflation, which strips the volatile energy and food components, climbed to 2.7 percent from 2.5 percent.
“Core inflation has remained stubbornly above target, driven in part by supply chain pressures tied to ongoing tariffs,” David-Alexandre Brassard, CPA Canada’s chief economist, said in a note emailed to The Epoch Times.
In 2024, the U.S. goods trade deficit with Canada exceeded $63 billion.
India
India was notably excluded from this month’s batch of letters.
Officials have been involved in active bilateral trade talks, and both sides have signaled optimism that an agreement could be finalized.
In April, India was facing a 26 percent reciprocal tariff.
Trump announced at a Cabinet meeting that he plans to install a 10 percent tariff on imports from “any country aligning themselves with the Anti-American policies of BRICS.”
BRICS is a coalition of emerging market countries led by Brazil, Russia, India, China, and South Africa. Other countries recently joined the group, including Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.
In 2024, the U.S. goods trade deficit with India was $45.7 billion, up by 5.4 percent from 2023.
Thailand
Thailand, which enjoys a $46 billion trade surplus with the United States, could face a 36 percent tariff in August if the two sides cannot reach a deal.
The U.S. economy is a significant market for Thailand, accounting for nearly one-fifth of its exports in 2024.
Bangkok has proposed lowering its import duties on many U.S. products to zero.
Malaysia
Malaysia, a major exporter of electronics and semiconductors, will be slapped with a 25 percent tariff on its exports next month, slightly higher than the 24 percent levy announced in April.
Malaysian trade officials say they do not plan to retaliate and intend to continue negotiating.
Data from the Office of the U.S. Trade Representative show that the U.S. goods trade deficit with Malaysia was $24.8 billion in 2024, a 7.6 percent decline from the previous year.
Indonesia
Indonesia became the fourth country to reach a new trade deal following Trump’s sweeping global tariff plans announced in April.
According to the president, products imported from Indonesia would be hit with a 19 percent tariff.
U.S. goods would have full access to the Indonesian economy without any levies.
Without a bilateral trade agreement, Indonesia would have faced a 32 percent tariff.
The U.S. goods trade deficit with Indonesia was shy of $18 billion in 2024.
Brazil
Trump stated in a July 9 letter that he will impose a 50 percent tariff on Brazil next month, citing Brazil’s nontariff trade barriers and treatment of former President Jair Bolsonaro, who is on trial.
In a formal letter to Brazilian President Luiz Inácio Lula da Silva, Trump said the country was engaged in a “witch hunt that should end immediately.”
Bolsonaro is accused of trying to stage a coup against Lula.
Lula threatened tit-for-tat retaliatory tariffs if Trump follows through.
“Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage,” Lula said in a post on X. “Any measure to increase tariffs unilaterally will be responded to in light of Brazil’s Law of Economic Reciprocity.”
Last year, the United States registered a goods trade surplus with Brazil of $7.4 billion, up by 32 percent from 2023.
Brazil exported goods worth a total of more than $42 billion to the United States in 2024, driven by crude oil, industrial metals, airplanes, and coffee.
Reuters contributed to this story.
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