US President Donald Trump is preparing to introduce major “Liberation Day” tariffs on Wednesday, a move that could potentially ignite a global trade war. While the exact details remain under wraps, Trump is set to announce the new tariffs in a White House ceremony at 4:00 pm (2000 GMT), following the close of Wall Street markets. He has promised the measures will protect the US from being “ripped off” and will usher in a new “golden age” for American industry.
Despite weeks of anticipation, the White House has admitted that Trump is still fine-tuning the specifics of the tariffs just hours before the announcement. The Republican billionaire has long advocated for tariffs as a remedy for America’s trade imbalances, often disregarding warnings from economists about their potential negative impacts. Critics argue that these tariffs could raise costs for US consumers and risk plunging both the US and global economies into recession.
The announcement has already sparked anxiety in global markets, while the countries most affected are preparing their own countermeasures. Trump’s decision to impose tariffs reflects the growing divide between the US and many of its closest allies, not only on trade but also on broader issues such as security and defense.
Trump has previously suggested that the tariffs would mirror those imposed by other nations. However, recent reports indicate that he might also consider imposing a blanket 20 percent tariff or offering preferential treatment to certain countries. White House Press Secretary Karoline Leavitt stated that Trump is meeting with his advisors to ensure the plan is “perfect” and that the tariffs will take effect immediately after the announcement.
Despite wavering on past tariff plans, Trump’s latest proposal has raised concerns of an all-out trade war, with major economies, including the European Union and Canada, threatening retaliation. Canadian Prime Minister Mark Carney affirmed that his country would respond carefully but firmly, while the EU, which Trump has accused of unfair trade practices, warned that all options were on the table.
Vietnam, aiming to soothe tensions, announced cuts to tariffs on a variety of goods. Meanwhile, other key exporters, including China, Japan, and South Korea, are accelerating negotiations on new trade agreements to counterbalance the US’s aggressive stance.
The global economic outlook is uncertain, with Mexico revising its growth forecast downward due to the strain in its trade relations with the US. Financial analysts, such as those from HSBC, caution that the announcement may prolong uncertainty and volatility in global markets.
Trump’s use of tariffs as a tool of foreign policy, first introduced during his first term, continues to dominate his economic strategy. He insists that these measures will revive America’s manufacturing sector, urging companies to relocate production to the US to avoid the levies. Additional tariffs on automobiles, steel, and aluminum are set to take effect in the coming days, further escalating tensions.
With global trade on edge, the full impact of Trump’s latest tariff strategy remains to be seen.
