President Trump is set to announce new ‘reciprocal’ tariffs, effective immediately, aimed at countries perceived to treat the U.S. unfairly. This initiative coincides with the implementation of a 25% tariff on imported vehicles. Global markets are bracing for potential retaliation from nations like Canada and Mexico, which are already planning responses to U.S. trade measures. Concerns are growing among American businesses about the impact of these tariffs on economic activity both domestically and internationally.
by David Lawder and Andrea Shalal
Trump’s Announcement of New Tariffs
President Donald Trump is poised to unveil a new set of ‘reciprocal’ tariffs this Wednesday, a move anticipated to trigger price hikes and retaliatory actions from various nations.
The president has proclaimed April 2 as ‘Liberation Day’, a date earmarked for the rollout of a trade strategy he believes will benefit American workers and products.
According to White House spokesperson Karoline Leavitt, these tariffs are expected to take effect immediately following Trump’s announcement, which is scheduled for 4:00 PM (8:00 PM GMT).
Additionally, the 25% tariffs on all imported vehicles to the U.S., announced last week, will come into force on April 3.
Trump has indicated that these ‘reciprocal’ tariffs will apply to all nations, with the White House clarifying that any country treating American interests unfairly will incur these tariffs.
Nevertheless, there remains some ambiguity regarding these measures, as reports suggest Trump is contemplating a universal 20% tariff.
A former trade official from Trump’s initial term commented that it is more plausible for the president to target specific countries with slightly lower tariffs.
Ryan Majerus, a former official at the Commerce Department, noted that while a universal tariff might be simpler to implement and could yield greater revenue, ‘reciprocal’ tariffs directed at individual countries would more effectively address their unfair trade practices.
‘Regardless, the ramifications of today’s announcement will be considerable across various sectors,’ he remarked.
Global Reactions and Retaliatory Measures
International markets are on edge as they await Trump’s announcement, especially since the U.S. has already enacted tariffs on aluminum, steel, and automobiles, alongside increased taxes on imports from China.
Major economies such as the European Union, Canada, and Mexico have already signaled plans for retaliatory actions against American tariffs.
Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum recently discussed strategies to ‘combat unjustified trade measures’ from the U.S., according to Carney’s office.
‘In light of forthcoming challenges, Prime Minister Carney and President Sheinbaum underscored the necessity of preserving North America’s competitiveness while honoring each nation’s sovereignty,’ the statement revealed.
American businesses are expressing concerns that the ‘Buy Canadian’ initiative is creating barriers for their products in Canada.
Economists predict that the introduction of these new tariffs could hinder economic activity, not just in the United States but on a global scale.