Washington, DC [US]: The White House is preparing to implement broad new tariffs on most imports by April 2, marking a significant escalation in US President Donald Trump’s ongoing trade war. Trump has dubbed the move “Liberation Day”, emphasizing its aim to reclaim America’s economic strength, as reported by The Washington Post.
In the first two months of his return to office, Trump has already raised tariffs on imports worth USD 800 billion, targeting major trade partners like China, Mexico, and Canada. The aggressive move has caused market volatility, raised recession fears, and triggered global backlash.
Despite concerns, the administration is now preparing to expand these tariffs, potentially imposing duties on “trillions” of dollars in imports. This unprecedented move has sparked anxiety among economists and even some White House allies.
Trump defended the plan, stating:
“It’s a liberation day for our country because we’re going to be getting back a lot of the wealth that we so foolishly gave up to other countries, including friend and foe.”
“Reciprocal Tariff” Strategy
Trump’s plan, referred to as the “reciprocal tariff” strategy, proposes that the US will impose tariffs matching those applied by foreign nations.
“If India, China, or any other country hits us with a 100 or 200 per cent tariff on American-made goods, we will hit them with the same exact tariff,” Trump declared.
Economists warn this move could push US tariffs to an average of 20%, levels unseen since the 1930s, potentially impacting businesses and consumers.
Economic Impact and Market Concerns
The proposed tariffs have already unsettled markets, with the S&P 500 down 8% and the Nasdaq dropping nearly 13% in the past month.
Industries reliant on imports have voiced concerns, while others are pushing for protective tariffs. The National Christmas Tree Association has called for duties on artificial trees from China, while the Southern Shrimp Alliance is advocating for tariffs on frozen shrimp imports.
Meanwhile, companies like JM Smucker Co. have raised concerns about unfair European Union tariffs impacting US exports.
Policy Challenges and Global Response
Implementing the new tariffs faces logistical and legal challenges. The US Trade Representative (USTR) is tasked with calibrating precise retaliatory tariffs for each trade partner — a complex task.
Treasury Secretary Scott Bessent said the policy would consider factors like currency manipulation and labour conditions, ensuring tariffs are tailored for each country.
Despite mounting concerns, White House spokesman Kush Desai confirmed the administration’s commitment to the plan:
“Every member of the Trump administration is aligned on finally leveling the playing field for American industries and workers.”
As the April 2 deadline nears, global markets, businesses, and policymakers are closely watching what could become the most significant shift in US trade policy in decades.