Trump’s ‘Liberation Day’ Tariffs Set to Launch at 4 PM ET/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump is expected to unveil sweeping new tariffs today as part of his “Liberation Day” initiative. The plan could spark global retaliation and heighten fears of a recession. Businesses and nations alike are bracing for immediate impacts on trade and the economy.
Trump’s Tariff Plan Quick Looks
- Trump’s “Liberation Day” tariffs set for April 2 launch.
- Plan may include up to 20% tariffs on all imports.
- 25% auto import tariffs to take effect immediately.
- Tariffs aim to fight fentanyl, boost revenue, and manufacturing.
- Developing nations like India, Brazil, and Vietnam could be hit hardest.
- European Union, Canada, and China planning retaliatory actions.
- Israel drops tariffs on U.S. goods to avoid conflict.
- Trump suggests tariffs could replace income taxes.
- Markets face growing fears of recession and inflation.
- Economists warn of rising costs and global economic fallout.
Trump’s ‘Liberation Day’ Tariffs Set to Launch at 4 PM ET
Deep Look
Trump’s ‘Liberation Day’ Tariffs Set to Shake Global Trade and Markets
President Donald Trump is preparing to unveil a sweeping set of tariffs on April 2, a day the administration is branding as “Liberation Day.” While the details of the tariffs have been shrouded in secrecy for months, the announcement is expected to set off a cascade of global economic consequences.
Businesses, markets, and foreign governments are anxiously awaiting the official rollout, which could mark the beginning of a more intense and uncertain phase in the global trade landscape.
A New Era of ‘Reciprocal Tariffs’
Trump’s tariff plan is centered around what he calls “reciprocal tariffs” — imposing trade penalties on countries that he claims charge higher import taxes on American goods. According to White House insiders, Trump is weighing several options: targeting specific countries, applying a flat import tariff of up to 20%, or customizing rates per trading partner.
White House press secretary Karoline Leavitt said Tuesday that the tariffs will be “effective immediately” following the 4 p.m. ET announcement in the Rose Garden. While such immediate implementation is logistically challenging, it leaves little time for international response — and experts expect retaliatory tariffs from major trading partners.
Trump’s Four-Fold Tariff Goals
The administration’s justification for the new tariffs spans four main objectives:
- Combatting fentanyl trafficking and illegal migration – Trump links these issues to trade relations with countries like China, Canada, and Mexico.
- Leveling the trade playing field – The U.S. runs trade deficits with many nations Trump sees as unfairly advantaged.
- Raising government revenue – Trump has floated replacing income taxes with tariff-generated revenue.
- Revitalizing domestic manufacturing – Tariffs are aimed at making imported goods more expensive to boost U.S. production.
Among the most consequential measures, a 25% tariff on all imported vehicles is expected to take effect today, with additional auto parts tariffs arriving by early May.
Global Response: Retaliation and Warnings
Global reaction is already mounting. European Commission President Ursula von der Leyen said the EU is ready to “strike back.” China’s foreign minister, Wang Yi, warned of a “counterattack,” accusing the U.S. of economic bullying. Canada, Mexico, Japan, and South Korea are also preparing defensive trade measures.
Meanwhile, Israel announced the cancellation of all tariffs on U.S. goods — a move widely seen as an attempt to preempt American tariffs, even though Israel’s existing duties on American imports were minimal.
Emerging Markets May Take the Hardest Hit
A recent Morgan Stanley report identifies countries like India, Brazil, Vietnam, and Indonesia as especially vulnerable to Trump’s tariff strategy. These countries face high trade imbalances with the U.S. and are likely targets for increased duties.
The report also highlights that many of these economies have higher import taxes on American goods than vice versa — making them primary targets for Trump’s “reciprocal” tariff formula.
Stacking Tariffs and Sector Hits
Today’s actions will pile new tariffs atop existing ones, including:
- 25% tariffs on steel and aluminum
- 25% tariffs on all imported vehicles
- 25% tariffs on foreign auto parts (May deadline)
If Trump imposes additional sector-wide tariffs, total rates could soar above 35% for goods from countries like South Korea, depending on combined levies.
Recession Concerns Rise
Economists warn that the tariff rollout could deepen economic strain. With inflation still high and many U.S. households under financial pressure, a sudden increase in import costs could push prices higher across the board.
Goldman Sachs analysts said in a recent note that while Trump’s proposed tax cuts and deregulation might stimulate growth, they won’t be enough to offset the negative impact of wide-ranging tariffs. Some analysts believe that a “blanket tariff” approach could drive up costs, destabilize markets, and tip the economy into recession.
Still, the Trump administration remains confident. “It is going to work,” Leavitt said Tuesday, brushing off criticism and emphasizing the potential for inflation relief via domestic economic boosts.
House Minority Leader Hakeem Jeffries: ‘This is not Liberation Day. It’s Recession Day’
Jeffries told reporters Wednesday that President Trump’s rollout of new tariffs would increase prices and ultimately drive the United States into a recession.
Trump is calling today “Liberation Day,” arguing the new tariffs would free the country from unfair trade practices.
“This is not Liberation Day,” Jeffries, a Democrat, said. “It’s Recession Day in the United States of America.”
“That’s what the Trump tariffs are going to do: Crash the economy, which has been happening since January 20 of this year,” he continued.
Tariff Targets: Friends and Foes Alike
The upcoming tariffs are expected to mirror recent 25% duties on car imports, steel, and aluminum, while also expanding into pharmaceuticals, electronics, lumber, and other key sectors. The administration has hinted at possible flat-rate tariffs of up to 20% across all imports, though country-specific measures could also be used.
White House trade adviser Peter Navarro projected that the new tariffs could generate as much as $600 billion annually — a claim many economists view skeptically. Meanwhile, Treasury Secretary Scott Bessent told lawmakers the rates might be negotiable for countries willing to cooperate.
Cost to Households and Economy
A new analysis by Yale University’s Budget Lab estimated that a universal 20% tariff would cost the average American household between $3,400 and $4,200 annually. Products ranging from food and housing to automobiles and insurance would become more expensive.
Despite these warnings, Trump argues that tariffs will reignite domestic manufacturing, balance trade, and reduce the country’s reliance on income taxes — suggesting that tariff revenues could eventually replace them.
But most economic forecasts suggest the opposite: stagnated growth, elevated inflation, and reduced consumer spending. Trump’s own prior tariffs, critics say, failed to trigger the promised manufacturing boom during his first term.
A Defining Trade Moment
Trump’s tariff announcement marks a key inflection point in his second-term economic policy. While supporters hail it as a bold move to restore American trade strength, critics view it as an economically risky gamble that could alienate allies, damage supply chains, and disrupt global growth.
Whatever unfolds in the wake of “Liberation Day,” it’s clear that the U.S. and the global economy are entering uncertain territory.
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