Washington: The White House confirmed that President Donald Trump will introduce new tariffs on Wednesday, though specifics regarding their scale remain unclear. The announcement, set for 4 pm Eastern Time (2000 GMT) in the White House Rose Garden, has heightened fears of an escalating global trade war.
Trump has promoted April 2 as "Liberation Day," signaling the imposition of reciprocal tariffs on countries that tax U.S. goods. According to White House spokeswoman Karoline Leavitt, these tariffs will take effect immediately, while a 25% tariff on auto imports will follow on April 3. Treasury Secretary Scott Bessent informed lawmakers that the tariffs will act as a cap and may decrease if trading partners comply with U.S. demands.
Previous tariff measures on aluminum, steel, and Chinese imports have already disrupted global trade. Trump’s persistence on trade barriers has triggered economic uncertainty, with businesses, consumers, and investors expressing concerns over rising costs and declining economic confidence. Economists warn that these measures could increase inflation while slowing economic growth.
Reports suggest that the administration is considering a universal tariff of around 20% on imports, potentially generating $6 trillion in revenue. Meanwhile, Canada and Mexico have vowed to retaliate, with Canadian Prime Minister Mark Carney emphasizing the need to protect domestic industries. Other nations are also exploring countermeasures while negotiating to avoid the tariffs.
The potential impact extends beyond the U.S., with global manufacturers experiencing a slowdown as they brace for policy changes. Market volatility has intensified, with investors pulling back in anticipation of Trump's announcement. Analysts warn that prolonged trade uncertainty could push the economy toward stagflation, characterized by rising prices and stagnant growth.
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