Trump announces new tariffs on ‘liberation day’

[UNITED STATES] Donald Trump will announce his next round of tariffs at the White House on Wednesday afternoon, threatening to start a global trade war on what he has termed "liberation day."

Since taking office, Trump has roiled global financial markets, worried corporate executives and economists, and sparked intense debates with the United States' main trading partners by proposing and delaying plans to slap tariffs on foreign imports many times.

The upcoming tariffs come amid heightened tensions with key allies, particularly as negotiations over the US-Mexico-Canada Agreement (USMCA) remain unresolved. Critics argue that the new tariffs could further destabilize the fragile trade pact, which was intended to replace NAFTA and foster closer economic cooperation. Meanwhile, supporters of the measures insist that aggressive trade tactics are necessary to force concessions from trading partners.

There have been no information released about Wednesday's plans prior to the announcement. The president is scheduled to speak at 4 p.m. ET. White House officials stated that the most sweeping reform of US trade policy would take effect immediately.

Trump has stated that his tariffs are intended to bring manufacturing back to the United States, respond to unfair trade policies in other nations, raise tax revenue, and incentivize crackdowns on migration and drug trafficking.

However, economists from both conservative and liberal think tanks have warned that tariffs could backfire, leading to job losses in sectors reliant on imported materials. A recent study by the Peterson Institute for International Economics projected that the proposed 20% across-the-board tariff could eliminate up to 500,000 US jobs, particularly in retail, automotive, and manufacturing industries.

So yet, his tariffs have been implemented haphazardly, with several rollbacks, delays, and vague pledges that have yet to be fulfilled. The threats have strained US relations with its main trading partners. Mark Carney, Canada's prime minister, has described them as "unjustified" and promised to retaliate. The European Union has announced a "strong plan" to react.

Trump's press secretary, Karoline Leavitt, stated that Trump spent Tuesday "perfecting" the trade strategy. "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 told reporters.

Behind the scenes, industry leaders have been lobbying the White House to exempt critical goods such as pharmaceuticals and semiconductors from the tariffs, fearing supply chain disruptions. The pharmaceutical industry, in particular, has warned that tariffs on medical imports could lead to drug shortages and higher healthcare costs—a politically sensitive issue ahead of the 2026 midterms.

Ahead of the announcement, Trump reiterated the idea of applying so-called reciprocal tariffs, in which the US would charge imports at the same rates as a country taxes US exports. Trump has particularly cited South Korea, Brazil, India, and the EU as potential targets for reciprocal tariffs.

"The world has been ripping off the United States for the last 40 years and more," said Trump this weekend. "All we're doing is being fair."

Tariffs of 25% on all imports from Mexico and Canada, two of the US's largest trading partners, are on the table as well. n early March, Trump delayed the start of the tariffs for the second time after negotiating with leaders of the two countries.

Trump's aides are also pushing him a 20% duty on all imports, which is more in line with what Trump promised during the campaign.

Any taxes imposed would be in addition to the tariffs that Trump has already implemented, which include a 20% tariff on all Chinese imports and a 25% tariff on all steel and aluminum imports. In addition, energy imports from Canada are subject to a 10% tariff. Trump also imposed in March a 25% tariff on all imported autos and auto parts, which will take effect on Thursday.

Polls show that the tariff plans have caused stock market declines and are unpopular with Americans. According to multiple accounts, internal debate within the White House over how far and wide the tariffs should extend has created uncertainty about what the levies will be.

According to Politico, some in the White House believe that Commerce Secretary Howard Lutnick is the most active on tariffs, pushing for all-encompassing measures. Meanwhile, treasury secretary Scott Bessent and trade adviser Peter Navarro are both opposed to significant tariffs.

Amid the infighting, some Republican lawmakers have begun distancing themselves from Trump’s trade agenda, fearing electoral repercussions. Senate Minority Leader Mitch McConnell recently cautioned that “tariffs are taxes on American consumers,” echoing concerns from business groups in key battleground states. However, Trump’s core base remains largely supportive, viewing the tariffs as a necessary stand against globalization.

However, all conflict within the White House has been mostly internal, with Trump and his cabinet spending the last few weeks attempting to portray the tariffs as beneficial to the US economy, despite the fact that the US stock market has fallen and consumer and corporate mood has plunged.

On Monday, at the conclusion of the first quarter of 2025, two of the three major stock exchanges reported their worst quarter in more than two years, as Wall Street has been suffering from the instability of Trump's trade conflicts. In March, consumer confidence fell to its lowest level in almost four years.

Economists at Goldman Sachs, JPMorgan, and other banks recently cut their estimates for growth in the US economy.

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 attempted to explain that the loss in confidence is due to uncertainties over trade policy, rather than the effects of tariffs themselves. However, experts predict that the effects of tariffs will be another source of uncertainty, leading to increased costs as American businesses, who will be required to pay the duties on imports, eventually pass the cost on 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."