The Trump administration has thrown down an impressive gauntlet to take on trade imbalances. In particular, they’re laser-focused on a subset of countries known as the “Dirty 15.” The phrase was first used by Treasury Secretary Scott Bessent. It paints a picture of countries that export a lot to the US, but maintain very high tariffs on US exports. These countries account for 15% of U.S. trade partners. Their huge trade surpluses with the U.S. have put them at the center of the administration’s trade agenda.
The Dirty 15 countries that include large economies such as China, the European Union, and Japan. These countries are some of the US’ largest trading partners. Combined, they make up more than 3 percent of U.S. trading volume. They are a substantial driver of the country’s rapidly growing trade deficit. The administration is considering imposing reciprocal tariffs on these nations as part of a broader effort to address what it perceives as unfair trade practices.
Among the Dirty 15 list are some heavy hitters. Among them are Argentina, Australia, Brazil, Canada, India, Indonesia, Korea, Malaysia, Mexico, Russia, Saudi Arabia and South Africa. These countries not only force high tariffs, but use other non-tariff barriers that block U.S. exports. Consequently, they have become a central target in the Trump administration’s primary approach, a generally more aggressive and confrontational strategy to rework existing trade relations.
The Office of the U.S. Trade Representative is currently reviewing these countries’ trade practices, with the Dirty 15 being a major focus. The administration is poised to announce additional tariffs at any moment. This action follows through on a 2017 Section 301 review intended to address unfair trade practices. The administration is currently soliciting public input on these practices. This is indicative of their willingness to move forward with the best measures that would help shift the overall trading environment.
Dirty 15 were also among the largest U.S. trade deficits. As a result, these deficits have put them on the frontlines of the debate over trade imbalances. Even the Trump administration’s flirtation with tariffs was a welcome sign that someone in Washington wanted to get serious about working toward more equitable trade relationships. These protectionist, so-called “fair trade” measures are designed to protect American industries. They want to ensure that through these agreements, they are forwarding fairer trading terms with these countries.