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US Treasury Sec. Bessent says Trump will announce a maximum for tariffs, countries can then bring them down

US Treasury Secretary Scott Bessent said late Tuesday that the amounts announced on Wednesday are the highest the tariffs will go. However, countries could then take steps to bring the tariffs down. 

In a Fox Business interview on March 18, Treasury Secretary Scott Bessent referred to the "Dirty 15." He pointed out to the 15% of countries that account for the majority of US trade volume while imposing hefty tariffs and other “non-tariff barriers” on U.S. goods. Bessent did not mention those countries.

Market reaction 

At the time of press, the US Dollar Index (DXY) was down 0.03% on the day at 104.18.

Tariffs FAQs

Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.

Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.

There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.

During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.

 

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