US President Donald Trump is set to unveil sweeping new “Liberation Day” tariffs on Wednesday, but has kept the world in suspense about the scale of the action, which could potentially ignite a global trade war.
Trump will announce the tariffs in the White House Rose Garden at 4:00 pm (2000 GMT), following the closure of Wall Street markets. He has promised that the measures will end the United States being “ripped off” and will usher in a new “golden age” for US industry. However, despite his firm stance on reciprocal tariffs targeting nations that have imposed measures against the US, the White House admitted late Tuesday that the details were still being worked out with less than 24 hours before the announcement.
The Republican billionaire has long championed tariffs, arguing they are the solution to America’s trade imbalances with both allies and adversaries. Critics, however, warn that US consumers will bear the brunt of higher costs as importers pass on the tariff increases, and they caution that the tariffs could risk triggering a damaging recession both domestically and globally.
Global markets have been on edge in anticipation of Trump’s announcement, with countries most likely to be affected calling for negotiations, while preparing for retaliatory actions.
The move highlights the growing rift between Trump’s America and many of its key allies, not only over trade, but also security, defense, and various other issues. Yet, in typical fashion, Trump is keeping the specifics close to his chest.
Trump had hinted at the tariffs for weeks, initially suggesting they would mirror the levies other countries have imposed. On Monday, he indicated that he would be “very kind” but provided little further clarity. As the deadline approached, US media reported that Trump was considering a blanket 20 percent tariff, with some countries potentially receiving preferential treatment. White House Press Secretary Karoline Leavitt said that Trump was meeting with top advisors on the eve of the announcement to “perfect it” and ensure the deal was flawless.
The tariffs will be implemented “immediately” after Wednesday’s announcement, Leavitt added, effectively ruling out any delays for negotiations with other countries.
While Trump has backtracked on tariff decisions in the past, particularly with allies like Canada and Mexico, his latest plans are raising alarms about a potential global trade war, which could drive up prices and disrupt economies worldwide.
Countries including the European Union and Canada have already pledged retaliation. Canadian Prime Minister Mark Carney stated on Tuesday that Canada would take “deliberate” measures to fight for its interests. The EU, which Trump has accused of attempting to “screw” the US, expressed hope for negotiations but emphasized that “all instruments are on the table” for retaliation if necessary.
British Prime Minister Keir Starmer and Trump have held talks on “productive negotiations” for a UK-US trade deal, while Vietnam announced on Tuesday it would reduce duties on several goods to appease Trump.
Trump has used tariffs as a key tool in foreign policy since his first term, from 2017-2021. He maintains that the tariffs will lead to a resurgence of American manufacturing and has suggested that companies can avoid them by relocating to the United States.
Last week, Trump announced a 25 percent auto tariff, set to take effect on April 3, and has been clear in his indifference to potential price hikes for foreign cars, saying he “couldn’t care less.” In March, a 25 percent tariff on steel and aluminum imports took effect, while China faced additional 20 percent tariffs on all goods, prompting retaliatory measures from Beijing. The EU is set to impose its own tariffs starting in mid-April.
