Trump’s “Liberation Day” tariffs could escalate trade tensions

Trump’s reciprocal tariffs set for “Liberation Day” on April 2 could escalate trade war and impact global markets.

As the trade wars initiated by U.S. President Donald Trump escalate, anticipation builds for April 2.

Trump has labelled this date “Liberation Day,” promising to introduce tariffs on imports to reduce reliance on foreign goods. He plans to implement “reciprocal” tariffs aligned with duties other countries impose.

However, specific details on these tariffs remain unclear. White House press secretary Karoline Leavitt stated Trump would disclose his plans on Wednesday, although details are still subject to his final decision.

Trump has taken an aggressive stance on tariffs, creating uncertainty with fluctuating trade actions. He asserts that tariffs protect U.S. industries and generate revenue, but economists warn that such broad tariffs could have adverse effects.

Key information on the upcoming tariffs includes potential product-specific duties or general averages, possibly reflecting foreign nations’ tax rates. White House trade adviser Peter Navarro indicated that these tariffs might raise $600 billion annually.

Starting Wednesday, Trump intends to impose a 25% tariff on imports from countries that purchase oil or gas from Venezuela, along with new tariffs targeting Venezuela itself. Similarly, a 25% tariff on automobile imports will commence soon.

Trump previously enacted a 10% tariff on Chinese imports, later increasing it to 20%. Canada and Mexico are also subject to these tariffs, facing delays on certain goods until early April.

Further tariffs from Trump are anticipated, while many countries have already implemented retaliatory measures. The forthcoming announcement on April 2 may instigate additional restrictions.