Trump to Announce New Round of Tariffs on ‘Liberation Day’

President Donald Trump is set to unveil a new round of tariffs from the White House on Wednesday, coinciding with what he has dubbed “liberation day.” This announcement threatens to escalate tensions in global trade, following a history of tariff announcements that have rattled stock markets and sparked disputes with the United States’ largest trading partners.

Details regarding the impending tariffs remain under wraps ahead of the 4 PM ET announcement, but White House officials indicate that the implementation of a significant overhaul of U.S. trade policy will occur immediately.

Trump has outlined several objectives for these tariffs, including revitalizing American manufacturing, addressing unfair trade practices from other nations, increasing tax revenue, and incentivizing efforts to curb migration and drug trafficking. However, his previous rollout of tariffs has been marked by confusion, characterized by rollbacks, delays, and vague promises that have yet to materialize. This has strained relationships with key trading partners, provoking strong responses from leaders like Canada’s Prime Minister Mark Carney, who labeled the tariffs “unjustified” and vowed to retaliate. The European Union has also stated it possesses a “strong plan” for retaliation.

Press Secretary Karoline Leavitt reported that Trump spent Tuesday refining the trade plan, emphasizing his commitment to ensuring it serves the interests of American workers. Ahead of the announcement, Trump reiterated the concept of reciprocal tariffs, suggesting that the U.S. would tax imports at the same rates that other countries impose on American exports. He specifically named South Korea, Brazil, India, and the EU as potential targets for such measures.

“The world has been ripping off the United States for the last 40 years and more,” Trump told NBC over the weekend. “All we’re doing is being fair.”

Additionally, Trump has hinted at imposing a 25% tariff on all imports from Mexico and Canada, aimed at pressuring these countries to address issues related to migration and drug trafficking. Following negotiations with leaders from both nations, the implementation of these tariffs has been delayed twice.

Reports also indicate that Trump’s advisers are considering a sweeping 20% across-the-board tariff on all imports, resembling his campaign promises. Any new tariffs would compound existing measures, which include a 20% tariff on all Chinese imports, a 25% tariff on steel and aluminum, and a 10% tariff on energy imports from Canada. Furthermore, a 25% tariff on imported vehicles and auto parts is set to take effect on Thursday.

The tariff proposals have already contributed to stock market declines and have proven unpopular among Americans, as indicated by recent polls. Internal conflicts within the White House regarding the extent of the tariffs have further complicated the situation. Politico reports that Commerce Secretary Howard Lutnick is pushing aggressive tariff measures, while Treasury Secretary Scott Bessent and trade adviser Peter Navarro are more cautious about extensive tariffs.

Despite the internal turmoil, Trump and his cabinet have attempted to frame the tariffs as beneficial for the U.S. economy, even as market volatility and declining consumer and business sentiment persist. On the last day of the first quarter of 2025, two of the three major stock exchanges recorded their worst quarter in over two years due to the ongoing chaos surrounding Trump’s trade policies. Consumer confidence also plunged to its lowest level in over four years in March.

Economists from Goldman Sachs, JPMorgan, and other financial institutions have recently downgraded their growth forecasts for the U.S. economy and noted an increased risk of recession. Neel Kashkari, president of the Minneapolis Federal Reserve, remarked, “It’s conceivable that the hit to confidence could have a bigger effect than the tariffs themselves.”

The Trump administration has argued that the decline in confidence stems from uncertainty over trade policy rather than the direct impacts of tariffs. However, many economists predict that the tariffs will add another layer of uncertainty, likely leading to higher consumer prices as American businesses pass the costs of tariffs on to consumers.

“CEOs are consistently saying they want to hike prices,” said Alex Jacquez, CEO of the Groundwork Collaborative, a progressive think tank. “What the major retailers and companies who may be affected by tariffs are already planning to do is pass these costs along to consumers as much as they possibly can.”