Trump softens stance on 'reciprocal tariffs' as April 2 nears
What's the story
US President Donald Trump is set to implement reciprocal tariffs on April 2, a move he has termed "Liberation Day" for the US.
This action is set to reconfigure trade relationships with select countries that consistently have trade surpluses with Washington.
While core reciprocal tariffs are set to be enforced on that date, decisions on broader sector-specific levies targeting automobiles, pharmaceuticals, and semiconductors remain undecided.
Customization strategy
White House adopts tailored approach to tariffs
According to the Wall Street Journal, the White House is going for a more tailored approach in the short term.
It is targeting a select group of countries informally referred to as the "dirty 15," a term coined by Treasury Secretary Scott Bessent.
These nations including G20 members and major trading partners such as China, Japan, Germany, South Korea, India, Mexico, and Canada are likely to face steep tariffs under this plan.
Strategic pivot
Shift from broader 3-tiered tariff framework
The move toward a more narrow focus marks a change from earlier plans of unveiling a wider three-tiered tariff framework including high, medium, and low categories for almost all US trading partners.
The administration now prefers assigning bespoke tariff rates to certain countries, reflecting Trump's emphasis on a more transactional approach to trade.
However, what happens to sector-specific tariffs as April 2 approaches?
Uncertainty persists
Industry groups seek clarity on potential exceptions
Business leaders and foreign governments are left guessing as industry groups remain unable to gather information on whether exemptions will be available.
Several Fortune 500 companies have stepped up direct lobbying with senior White House and Commerce Department officials.
However, despite industry groups pressuring him, Trump has been reluctant to issue carve-outs, displaying a tough front from Commerce Secretary Howard Lutnick and US Trade Representative Jameson Greer.
Trade tensions
US imposes additional duties on steel, aluminum imports
The US has imposed additional duties on imports of steel and aluminum from all countries, including India.
However, Minister of State for Commerce and Industry Jitin Prasada clarified that no country-specific or reciprocal tariffs have been imposed yet.
Prasada said the US issued a Memorandum on Reciprocal Trade and Tariffs on February 13, 2025. Under this, India's secretary of commerce and the US trade representative have been instructed to analyze the impact of non-reciprocal trading arrangements and propose required remedies.