U.S. President Donald Trump is set to announce major new tariffs on Wednesday, branding them as part of a "Liberation Day" initiative to revive American industry. However, with just hours to go before the 4:00 PM (ET) Rose Garden announcement, the scope of the measures remains unclear, sparking global anxiety over a potential trade war.
While Trump insists the tariffs will prevent the U.S. from being "ripped off" and usher in a manufacturing resurgence, critics warn they could drive up prices for American consumers and risk a global economic downturn. Reports suggest the administration is still finalizing key details, with options ranging from reciprocal tariffs on nations targeting U.S. exports to a sweeping 20% blanket tariff.
Immediate Global Repercussions
The European Union, Canada, and other major economies have vowed retaliation, with Canadian Prime Minister Mark Carney pledging to “fight for Canada.” The EU, which Trump accuses of unfair trade practices, has warned that it is prepared to respond with countermeasures. Meanwhile, Vietnam has moved to slash duties on various goods in a bid to ease tensions.
Britain’s Prime Minister Keir Starmer has engaged in negotiations for a UK-U.S. trade deal, while China, already hit by 20% tariffs in March, has imposed retaliatory measures of its own.
Trump’s Tariff Playbook
Trump has long championed tariffs as a foreign policy tool, using them during his first term (2017-2021) to pressure allies and adversaries alike. Recently, he imposed a 25% tariff on steel and aluminum imports, along with a 25% auto tariff set to take effect on April 3.
White House Press Secretary Karoline Leavitt confirmed the new tariffs would take effect “immediately”, with no negotiation window. Trump, dismissing concerns over rising prices, has stated he “couldn’t care less” if foreign car prices increase, urging companies to relocate to the U.S. to avoid penalties.
With Wall Street on edge and the world watching, Trump’s latest trade offensive is poised to reshape global markets and U.S. economic policy—for better or worse.