On Wednesday, April 2, or as President Trump calls it “Liberation Day”, America intends on imposing “reciprocal” tariffs by increasing US duties to match the tax rates charged by other countries on American imports.
The import duties come on top of the series of other tariffs Trump has already announced-most of which are on America’s largest trading partners with huge trade deficits-namely China, Canada and Mexico.
Census data shows that nearly 100 countries have a trade deficit with the U.S. The data covers a little over 250 countries which also include trade with free trade unions.
The wave of tariffs is Trump’s attempt to boost the demand for good made in the U.S. and spur domestic manufacturing sector. Data from Census shows that U.S. deficit widened over a month by 28 percent, reaching $156 billion in the month of January in 2025 from $122 billion in December last year.
The U.S. recorded significant trade deficits with leading partners in 2024: approximately $295 billion with China, $235.6 billion with the European Union (EU), and $171.8 billion with Mexico.
The U.S. recorded a goods trade deficit of $63.3 billion with Canada, one of its leading trade partners.
This deficit was smaller than those with several other nations, including Vietnam ($124 billion), Germany ($84.8 billion), Ireland ($86.7 billion), Taiwan ($73.9 billion), Japan ($68.5 billion), and South Korea ($66 billion).
Collectively, the U.S. had a trade deficit with some leading economies across Asia including China, Vietnam, Taiwan, Japan, South Korea, India and Thailand—amounted to approximately $743 billion in 2024. Ahead of April 2, South Korea, China, and Japan agreed to promote regional trade through South Korea-Japan-China free trade agreement deal.
The Group of seven countries or better known as G7, comprise of advanced economies. These include Japan, Germany, U.S., UK, Italy, France and Canada. Census data shows that U.S. recorded trade deficits with five of the six trading partners in the G7.
Notably, the U.S. maintained a trade surplus with the UK in 2024.
April 2 reactions across the world
While very little is known about the details of the tariffs, countries across the globe have already started reacting to Trump’s April 2 announcement.
Not naming the countries, Treasury Secretary Scott Bessent, in a Fox Business interview on March 18, said there are big groups of countries where the US has a small trade surplus but not much trading is done with those countries. Without naming the countries, he mentioned “the dirty 15” as those with substantial tariffs.
He told Fox news:
I’m optimistic that, April 2, some of the tariffs may not have to go on because a deal is pre-negotiated,” he added, “or that once countries receive their reciprocal tariff number, that, right after that, they will come to us and want to negotiate it down.
Canada (trade deficit in 2024: $63B)
Canadian Prime Minister Mark Carney told reporters on Tuesday that the country will respond to the tariffs. Canada is a leading trading partner of the U.S. In response to the April 2 tariffs, Carney said,
We will respond to additional measures. We will put in place retaliatory measures if there are additional measures put against Canada tomorrow.
The U.S. ran a trade deficit of $63.3 billion with Canada in 2024. Experts forecast that with tariffs in place, Canada’s growth rate would slow to 0.7% this year and next, well below the 2% previously forecast for both years.
Mexico (trade deficit in 2024: $172B)
The Organization for Economic Cooperation and Development (OECD) warned last month that the Mexican economy would be hit hardest by the tariff hikes, contracting the economy by 1.3% this year and a further 0.6% next year, instead of growing 1.2% and 1.6% as previously expected.
Mexican President Claudia Sheinbaum said Tuesday there will be no “eye for an eye” approach.
Sheinbaum said,
We do not believe in an eye for an eye, a tooth for a tooth, because that always leads to a bad situation. Of course, measures are taken (in Mexico) because measures are taken on the other side, but the dialogue must continue.
European Union (trade deficit in 2024: $235B)
The EU has a “strong plan” to retaliate against tariffs imposed by Trump but the union would prefer to negotiate.
European Commission President Ursula von der Leyen told EU lawmakers,
Europe has not started this confrontation. We do not necessarily want to retaliate, but if it is necessary, we have a strong plan to retaliate and we will use it.
The European Commission, as the EU’s executive body, is responsible for negotiating trade agreements and managing trade disputes on behalf of the EU’s 27 member countries.
Ireland
Ireland could be one of the hardest hit by the April 2 tariffs since it is the most reliant on the US as an export market. The Irish Prime Minister, Micheál Martin said on Monday that increased US tariffs were “a very grave and serious threat”.