US President Donald Trump will announce a series of massive tariffs on April 2 as part of his ambitious economic agenda to reshape US trade relations with its allies and adversaries, while shaking up the global economy in the process.
Trump and his administration have touted the tariff announcement as a "Liberation Day" for the United States as they seek to reduce the country's dependence on foreign goods as part of a broader policy initiative aimed at reviving American manufacturing, reducing the US trade deficit and reducing the national debt.
"The president will announce a tariff plan that will end the unfair trade practices that have cheated our country for decades," White House spokeswoman Caroline Leavitt told reporters. "He is doing this in the best interest of the American worker."
However, ahead of the announcement, it is unclear exactly what will come into effect and whether there will be exceptions, delays or refunds of customs duties.
Leavitt said that it is ultimately up to Trump to decide which tariffs to impose and that the US president and his advisers have outlined different scenarios in the weeks and days leading up to the announcement, which will be made at the White House.
Those scenarios range from blanket tariffs of up to 20 percent that would affect almost every country that does business with the United States to a so-called reciprocal tariff approach, where Washington matches other countries' duties on American products dollar for dollar.
The introduction of deferred tariffs of 25 percent on Mexico and Canada could also be on the table, as well as tariffs on lumber, copper, pharmaceuticals and microchips.
Trump has already announced 25 percent tariffs on car imports that are set to take effect on April 3.
What is the Trump administration's latest thinking on tariffs?
Which approach Trump adopts to tariffs could reveal more about how he and his administration intend to use financial measures.
The Trump administration also wants to increase revenue from tariffs – import duties on goods coming into the US – and use them as leverage to force other nations to lower their tariffs or make other policy changes, such as combating migration and drug trafficking.
However, some economists and market analysts have noted that – if tariffs are negotiable and could be reduced over time – this would limit how much revenue they could ultimately generate.
Other concerns have been raised about the effects the tariffs could have on price increases in the US and broader economic consequences.
Trump's tariffs and his threats to impose more have already sent US stocks plunging and raised fears that the country's economy could enter a recession. The S&P 500 index - which tracks the performance of 500 of the largest companies on US stock exchanges - is on track for its biggest quarterly loss since the fall of 2022.
What will be the global impact of US auto tariffs?
The shock from auto tariffs could be large and leave lasting consequences across Europe and Asia.
In Asia, the measures could have a major impact on the economies of South Korea and Japan, which rely heavily on their automotive sectors. In Europe, the consequences could hit Germany and neighboring countries, also heavily integrated into the European Union's automotive supply chain.
Slovakia, which relies on the automotive industry as the driving force of its economy, would be among the three most affected countries in the EU, the country's Slovak Economy Minister Denisa Sakova said on March 28.
According to estimates compiled by Goldman Sachs, nearly half of the 16 million cars sold in the U.S. last year were imported, worth a total of more than $330 billion.
Some research shows that the measures can help achieve the results outlined by the Trump administration.
Automakers, including South Korea's Hyundai and Kia, have already announced plans to increase production in the US.
The Yale Budget Lab, a nonpartisan think tank affiliated with Yale University, also estimated that Trump's new auto tariffs could raise $600 billion to $650 billion in revenue from 2026 to 2035.
However, the same study found that the levies would increase the price of American vehicles by an average of 13,5 percent, equivalent to an additional $6.400 for the price of the average new car in 2024.
Trump's 25 percent tariffs on steel and aluminum, which took effect on March 12, are projected to increase the price of conventionally powered vehicles by $250 to $800 and electric vehicles (EVs) by $2.500 or more, according to financial consultancy Anderson Economic Group (AEG).
Will new tariffs intensify the global trade war?
Trump's tariffs have already been met with retaliatory measures, and the April 2 announcement could bring a new round that would further inflame the global trade war.
Both Canada and China have imposed retaliatory tariffs on a range of US products, while the EU has said it will impose 50% on American whiskey, motorcycles and motorboats, as well as additional duties starting in mid-April on chewing gum, poultry, soybeans and other goods.
The 27-nation bloc has also threatened, but not implemented, 25 percent tariffs on all imports from the United States.
European Commission President Ursula von der Leyen said on April 1 that Brussels has a "robust plan" to counter new US tariffs, which it said could target US banks and big tech companies.
Trade tensions between Beijing and Washington, which have exchanged tariffs since February, could also rise after Trump's "Liberation Day" announcement.
However, the US president has also floated the idea of reducing tariffs on Chinese goods to secure a deal with TikTok's Chinese parent company, ByteDance, as the April 5 deadline for the app's sale approaches.
Under US law, ByteDance had to separate from TikTok by January 19 or risk being banned. However, Trump granted a 75-day grace period.
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