President Trump to launch a barrage of reciprocal tariffs. Wednesday’s tariffs come on what he has dubbed “Liberation Day” to free U.S. from what he says are years of unfair trade practices.
After weeks of White House hype and public anxiety, President Donald Trump is set Wednesday to announce a barrage of self-described reciprocal tariffs on friend and foe alike.
The new tariffs, coming on what Trump has called “Liberation Day,” is a bid to boost U.S. manufacturing and punish other countries for what he has said are years of unfair trade practices. But by most economists’ assessments, the risky move threatens to plunge the economy into a downturn and mangle decades-old alliances.
The White House is exuding confidence despite the political and financial gamble being undertaken.
“April 2, 2025, will go down as one of the most important days in modern American history,” White House press secretary Karoline Leavitt said at Tuesday’s briefing while adding that the new tariffs will take effect immediately.
The reciprocal tariffs Trump plans to announce follow similar recent announcements of 25% taxes on auto imports; levies against China, Canada and Mexico; and expanded tariffs on steel and aluminum. Trump has also put tariffs against countries that import oil from Venezuela and plans separate import taxes on pharmaceutical drugs, lumber, copper and computer chips.
None of the warning signs about a falling stock market or consumer sentiment turning morose have caused the administration to publicly second-guess its strategy.
White House trade adviser Peter Navarro has suggested that the new tariffs would raise $600 billion annually, which would be the largest tax increase since World War II. Treasury Secretary Scott Bessent told lawmakers that the tariffs would be capped and could be negotiated downward by other countries, according to the office of Rep. Kevin Hern, R-Okla. But the White House has yet to confirm policy details, despite Trump saying on Monday that he had made his decision.
Importers would likely pass along some of the cost of the taxes on to consumers. The Budget Lab at Yale University estimates that a 20% universal tariff would cost the average household an additional $3,400 to $4,200.
The Republican administration’s premise is that manufacturers will quickly increase domestic production and create new factory jobs — and the White House is expressing confidence that Trump’s approach is correct.
