The White House is refining its strategy on tariffs set to take effect on April 2, focusing on a more targeted approach rather than blanket industry-wide levies. While President Trump has long promised a sweeping tariff package on sectors like automobiles, pharmaceuticals, and semiconductors, the administration now appears to be prioritizing reciprocal tariffs aimed at specific countries with persistent trade imbalances with the U.S. This shift, first reported by Bloomberg, signals a recalibration of the administration’s trade policy.
The "Liberation Day" Plan
President Trump has referred to April 2 as "Liberation Day" for the U.S., marking the implementation of so-called reciprocal tariffs. These tariffs aim to align U.S. duties with those imposed by trading partners. Despite earlier assertions that tariffs would extend to specific industries, an administration official confirmed that sector-specific tariffs are unlikely to be announced on April 2. Instead, the focus will remain on reciprocal trade levies targeting nations that dominate U.S. foreign trade.
The administration’s evolving tariff plan has left uncertainty surrounding the fate of tariffs on Canada and Mexico. Trump previously linked tariffs on these countries to fentanyl trafficking concerns but has not clarified if or when those tariffs will be enacted. The White House has remained silent on the issue, adding to the growing anticipation and concern among businesses and trade partners.
The "Dirty 15"—Who’s on the List?
Insiders familiar with the administration’s plans indicate that tariffs will be imposed on about 15% of U.S. trading partners—dubbed the “dirty 15” by Treasury Secretary Scott Bessent. These nations, identified as having consistent trade imbalances with the U.S., will face substantial tariff hikes. Some countries likely to be included are Australia, Brazil, Canada, China, the European Union, India, Japan, South Korea, Mexico, Russia, and Vietnam. However, some nations could face lower tariffs depending on negotiations and economic considerations.
This approach marks a shift from earlier considerations that proposed categorizing trading partners into three tiers of high, medium, and low tariffs. Instead, each country will receive an individualized tariff rate based on its trade relationship with the U.S. While this method may appear more precise, it still represents one of the most aggressive trade moves in decades.
Rapid Implementation and Industry Reactions
The administration is prepared to implement tariffs almost immediately on April 2 under the president’s emergency economic authority. According to sources, while final decisions remain fluid, Trump’s team is gearing up for swift execution. This contrasts with earlier discussions in February, when a White House official suggested that reciprocal tariffs would first be outlined in a report before being formally enacted.
This hardline approach follows weeks of intense discussions with both U.S. industry leaders and foreign governments. Canadian and Mexican officials reportedly received little room for negotiation, being told there was no way to avoid reciprocal tariffs ahead of April 2. However, there is still some hope that talks post-April 2 might bring adjustments.
Exemptions? Not Likely
Industry leaders and corporate executives have expressed concerns about potential exemptions, but the administration remains firm on limiting carve-outs. Trump reportedly told oil executives in a recent White House meeting that he did not want to grant exemptions, though he would consider occasional ones. When asked specifically about steel and aluminum exemptions, he did not commit to any decisions.
Top administration officials, including U.S. Trade Representative Jameson Greer and Commerce Secretary Howard Lutnick, have reinforced the stance that exemptions will be minimal, citing previous concerns that too many were granted during Trump’s first administration. Meanwhile, corporate lobbyists representing Fortune 500 companies are scrambling to find pathways to secure exemptions, but sources indicate that the White House remains steadfast.
Corporate America in Limbo
As April 2 approaches, major corporations and industry leaders are desperate for clarity. Some executives are being advised to appeal directly to top White House or Commerce Department officials, arguing how the tariffs might impact their operations. Businesses that can demonstrate a willingness to move manufacturing back to the U.S. within six months may have a better chance of securing tariff relief.
A Fortune 500 CEO summed up the industry sentiment by saying, "April 2 can’t get here fast enough."
The Uncertain Path Forward
Trump has previously shown some flexibility on trade policies. For instance, he granted temporary reprieves to automakers regarding tariffs on Canada and Mexico under the USMCA trade agreement. However, he later expressed frustration over criticism for backing down, hinting that his approach to tariffs could shift further in the coming weeks.
“Once you give exemptions for one company, you have to do that for all,” Trump remarked. “The word flexibility is an important word. Sometimes there’s flexibility, there’ll be flexibility.”
For now, businesses, foreign governments, and industry leaders can only wait and see how the final tariff package unfolds. With the administration taking a hardline stance, the coming weeks will reveal whether Trump sticks to his aggressive trade strategy or makes concessions as pressures mount.
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