US President, Donald Trump is expected to impose broad new reciprocal tariffs on global trading partners on Wednesday.
The move could overturn decades of rules-based trade, increase costs, and provoke retaliation from multiple nations.
The specifics of the tariff plan, which Trump has called America’s ‘Liberation Day’, are still being finalised.
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The announcement is scheduled for 4 p.m. Eastern Time (2000 GMT) in the White House Rose Garden.
The new duties will take effect immediately after Trump’s announcement. A separate 25% global tariff on auto imports is planned for April 3.
Trump has defended his tariff strategy as a way to balance the disparity between US tariffs and those imposed by other countries.
He also aims to counter non-tariff barriers that disadvantage US exports.
However, the exact structure of the tariffs remains unclear, with reports suggesting Trump is considering a 20% universal tariff.
European Central Bank President, Christine Lagarde warned of the global consequences.
“It will be negative the world over and the density and the durability of the impact will vary depending on the scope, on the products targeted, on how long it lasts, on whether or not there are negotiations,” she said in an interview with Ireland’s Newstalk radio.
As global markets await further details, stocks dipped on Wednesday. Gold, a common safe-haven asset, hovered near record highs.
“I can’t recall a situation where the stakes were this high and yet the outcome was so unpredictable. The devil is going to be in the details and nobody knows the details,” said Steve Sosnick, chief strategist at Interactive Brokers.
Industries across the board—including automotive, ocean freight shipping, and luxury goods—are watching closely. Trump’s frequent use of emergency powers to impose, withdraw, and reinstate tariffs has left businesses struggling to adapt.
“You cannot make important decisions on your supply chain when the rules of the game keep changing,” said Peter Sand, chief analyst at freight pricing platform Xeneta.
A former trade official from Trump’s first term suggested Trump might opt for country-specific tariff rates at slightly lower levels instead of a blanket tariff. The official added that more than 15 countries could be affected—more than the number previously identified by Treasury Secretary Scott Bessent.
Since taking office just over ten weeks ago, Trump has already imposed new 20% duties on all Chinese imports over fentanyl concerns. He has also reinstated 25% tariffs on steel and aluminum, extending them to nearly $150 billion worth of downstream products.
A temporary exemption for most Canadian and Mexican goods from his 25% fentanyl-related tariffs is set to expire on Wednesday.
Administration officials confirmed that all of Trump’s tariffs, including prior ones, will stack. A Mexican-built car, previously facing a 2.5% import duty, will now be subject to both fentanyl-related tariffs and new auto sector tariffs.
This will result in a combined rate of 52.5%—plus any reciprocal tariffs Trump might impose on Mexican goods.
(Reuters)
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