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Trump set to announce new round of tariffs on his so-called ‘liberation day’ Trump announces sweeping new tariffs, upending decades of US trade policy
(about 8 hours later)
President’s plans have rattled global stock markets and triggered heated rows with US’s largest trading partners President to impose ‘reciprocal’ tariffs on largest trading partners and says new charges will bring about ‘golden age’
Donald Trump will announce his latest round of tariffs at the White House on Wednesday, threatening to unleash a global trade war on what he has dubbed “liberation day”. Donald Trump announced sweeping tariffs on some of its largest trading partners on Wednesday, upending decades of US trade policy and threatening to unleash a global trade war on what he has dubbed “liberation day”.
Trump has rattled global stock markets, alarmed corporate executives and economists, and triggered heated rows with the US’s largest trading partners by announcing and delaying plans to impose tariffs on foreign imports several times since taking office. “This is one of the most important days, in my opinion, in American history,” Trump said, speaking on the White House lawn. For decades America had been “looted, pillaged and raped” by its trading partners, he said. “In many cases, the friend is worse than the foe.”
No details of Wednesday’s plans have been made available ahead of the announcement. The president is set to speak at 4pm ET. White House officials said that the implementation of the most sweeping rewrite of US trade policy would be immediate. Trump said he intends to impose “reciprocal tariffs” on foreign imports, charging US trading partners the same duties imposed by the country of origin on the same goods. Among other examples, Trump criticized European bans on imported chicken, Canada’s tariffs on dairy, and Japan’s levies on rice.
Trump has made clear a few goals he wants to accomplish through his tariffs: bring manufacturing back to the US, respond to unfair trade policies from other countries, increase tax revenue, and incentivize crackdowns on migration and drug trafficking. Trump said the US would charge half of the fees he feels trading partners unfairly impose on the US because the US people are “very kind”.
The implementation of his tariffs has so far been haphazard, with multiple rollbacks and delays and vague promises that have yet to come to fruition. The threats have soured US relations with its largest trading partners. Canada’s prime minister, Mark Carney, has called them “unjustified” and pledged to retaliate. The European Union has said it has a “strong plan” to retaliate. The president displayed a chart that said China charged the US 67% in “unfair” fees, and said the US would now levy a 34% fee. The EU charges 39% on imports, according to the White House, and will now be levied at 20%. Trump said the UK would be charged 10% more – equal to the Trump administration’s calculations of the UK’s fees on US imports.
Karoline Leavitt, Trump’s press secretary, said that Trump was spending Tuesday “perfecting” the trade plan. “He is with his trade and tariff team right now, perfecting it to make sure this is a perfect deal for the American people and the American worker,” Leavitt said. The tariffs come on top of a lineup of levies that Trump has already implemented: an additional 20% tariff on all Chinese imports and a 25% tariff on all steel and aluminum imports. There is also a 10% tariff on energy imports from Canada.
Ahead of the announcement, Trump repeated the idea of imposing so-called reciprocal tariffs, with the US taxing imports at the same rates that a country uses for US exports. Trump has specifically mentioned countries like South Korea, Brazil and India, along with the EU, as being possible targets for reciprocal tariffs.
“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.”
Also still on the table are 25% tariffs on all imports from Mexico and Canada, two of the US’s biggest trading partners, which Trump wants to utilize to force the countries to quell migration and drug trafficking into the US. In early March, Trump delayed the start of the tariffs for the second time after negotiating with leaders of the two countries.
Reports have also said that Trump’s advisers are also pitching him a 20% across-the-board tariff on all imports, something closer to what Trump promised on the campaign trail.
Any tariffs announced would be on top of the tariffs that Trump has already implemented: an additional 20% tariff on all Chinese imports and a 25% tariff on all steel and aluminum imports. There is also a 10% tariff on energy imports from Canada.
Trump also announced in March a 25% tariff on all imported vehicles and, eventually, imported auto parts, which will start going into effect on Thursday.Trump also announced in March a 25% tariff on all imported vehicles and, eventually, imported auto parts, which will start going into effect on Thursday.
The tariff plans have led to stock market sell-offs and are proving unpopular with Americans, according to polls. Multiple reports suggest internal conflicts within the White House over how far and wide the tariffs should go have exacerbated the uncertainty over what the tariffs will be. “Reciprocal: that means they do it us and we do it to them. Very simple, can’t get any more simple than that,” he said. “This indeed will be the golden age of America,” he said.
Over the past few months, Trump has rattled global stock markets, alarmed corporate executives and economists, and triggered heated rows with the US’s largest trading partners by announcing and delaying plans to impose tariffs on foreign imports several times since taking office.
Trump has made clear the goals he wants to accomplish through his tariffs: bring manufacturing back to the US; respond to unfair trade policies from other countries; increase tax revenue; and incentivize crackdowns on migration and drug trafficking.
But the implementation of his tariffs has so far have been haphazard, with multiple rollbacks and delays, and vague promises that have yet to come to fruition. The threats have soured US relations with its largest trading partners. Canada’s prime minister, Mark Carney, has called them “unjustified” and pledged to retaliate. The European Union has said it has a “strong plan” to retaliate.
Senate Democrats are also expected to bring a resolution that would block any tariffs on Canadian products. Democratic senator Tim Kaine, who is leading the resolution, told reporters he has the support of four Republican senators: Mitch McConnell, Lisa Murkowski, Rand Paul and Susan Collins.
If four Republicans vote with Democrats, the resolution will pass, though it will still have to go through the Republican-controlled House.
The US stock market closed slightly up on Wednesday, ahead of Trump’s announcement, with a slight boost from news that Elon Musk may step away from his role in the White House soon to focus on his businesses.
Even with the slight upswing, two of the three major stock exchanges saw their worst quarter in over two years after Monday marked the end of the first quarter.
In March, consumer confidence plunged to its lowest level in over four years. Polls have shown that tariffs are unpopular with Americans, including Republicans. Only 28% of people in a poll from Marquette Law School released Wednesday said that tariffs help the economy.
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The uncertainty around Trump’s tariff policies have increased the likelihood of a recession, according to recent forecasts from economists at Goldman Sachs, JP Morgan and other banks.
Neel Kashkari, president of the Minneapolis Federal Reserve, told Bloomberg News that it is “the most dramatic shift in confidence that I can recall, except for when Covid hit”, he said. “It’s conceivable that the hit to confidence could have a bigger effect than the tariffs themselves.”
The Trump administration has tried to argue that the drop in confidence has to do with the uncertainty over trade policy, not the impacts of the tariffs themselves.
Multiple reports have suggested internal conflicts within the White House over how far and wide the tariffs should be.
Recent reporting from Politico suggests that some within the White House see the commerce secretary, Howard Lutnick, as the most aggressive about tariffs, pushing across-the-board measures. Meanwhile, the treasury secretary, Scott Bessent, and trade adviser Peter Navarro are both more averse to dramatic tariffs.Recent reporting from Politico suggests that some within the White House see the commerce secretary, Howard Lutnick, as the most aggressive about tariffs, pushing across-the-board measures. Meanwhile, the treasury secretary, Scott Bessent, and trade adviser Peter Navarro are both more averse to dramatic tariffs.
But all conflict within the White House has been largely internal, while Trump and his cabinet have spent the last few weeks trying to pitch the tariffs as good for the US economy, even as the US stock market has been sliding downward and consumer and business sentiments have plummeted.But all conflict within the White House has been largely internal, while Trump and his cabinet have spent the last few weeks trying to pitch the tariffs as good for the US economy, even as the US stock market has been sliding downward and consumer and business sentiments have plummeted.
On Monday, the end of the first quarter of 2025, two of the three major stock exchanges saw their worst quarter in over two years as Wall Street has been reeling from the chaos of Trump’s trade wars. In March, consumer confidence plunged to its lowest level in over four years. Yet economists say the impacts of tariffs will be another uncertainty in itself, likely leading to higher prices as American businesses, which will have to pay the tariffs on imports, ultimately shifting the cost down to consumers.
Economists at Goldman Sachs, JP Morgan and other banks lowered their forecasts for growth in the US economy in recent days and have noted an increased chance of a recession.
Neel Kashkari, president of the Minneapolis Federal Reserve, told Bloomberg News that it is “the most dramatic shift in confidence that I can recall, except for when Covid hit”, he said. “It’s conceivable that the hit to confidence could have a bigger effect than the tariffs themselves.”
The Trump administration has tried to argue that the drop in confidence has to do with the uncertainty over trade policy, not the impacts of the tariffs themselves. Yet economists say the impacts of tariffs will be another uncertainty in itself, likely leading to higher prices as American businesses, which will have to pay the tariffs on imports, ultimately shifting the cost down to consumers.
“CEOs are consistently saying they want to hike prices,” Alex Jacquez, CEO of the Groundwork Collaborative, a progressive thinktank and advocacy group, told reporters on Tuesday. “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.”“CEOs are consistently saying they want to hike prices,” Alex Jacquez, CEO of the Groundwork Collaborative, a progressive thinktank and advocacy group, told reporters on Tuesday. “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.”