US President Donald Trump is set to unveil sweeping new “Liberation Day” tariffs on Wednesday, a move that could trigger a global trade war. Key US trading partners, including the European Union and Britain, have said they are preparing responses to Trump’s escalating actions, as markets in both Europe and the US reacted with concern.
Trump is expected to announce the tariffs in a ceremony at the White House Rose Garden, just as Wall Street stocks close at 4:00 pm (2000 GMT). On Wednesday morning, he posted a brief message on his Truth Social platform: “IT’S LIBERATION DAY IN AMERICA!”
The 78-year-old president has pledged reciprocal tariffs against any country that targets the US economy, calling the tariffs necessary to prevent the US from being “ripped off.” However, the specifics of the tariffs remained uncertain until the last minute, with the White House saying Trump was still finalizing the details.
Reports suggest the tariffs could include tit-for-tat measures, blanket 20% tariffs, or preferential treatment for certain countries based on their trade deficits. In his last public appearance on Monday, Trump said he would be “very kind,” but offered little clarity on the details.
Critics warn that US businesses and consumers could bear the brunt of the costs, with the risk of pushing the country into a recession. Mark Zandi, chief economist of Moody’s Analytics, predicted that a prolonged trade war could lead to a US recession by Labor Day.
The announcement has already caused global market turmoil, with countries preparing their responses. European Central Bank President Christine Lagarde noted that any retaliatory steps would negatively impact the global economy.
Mexico and Canada, whose economies are closely tied to the US, are expected to be especially vulnerable. Mexican truck driver Alejandro Espinoza, waiting at the border, expressed frustration, saying, “Unfortunately, we’re the ones who pay in the end.”
In response to Trump’s tariffs, the European Union has vowed to retaliate, with initial measures focused on countering US tariffs on steel and aluminum, and plans for sector-by-sector actions. British Prime Minister Keir Starmer emphasized that a trade war benefits no one, while Germany warned that trade wars hurt both parties. Canada’s Prime Minister Mark Carney said his country would respond “very deliberately.”
The White House confirmed that Trump’s tariffs would take effect immediately after the announcement, eliminating any possibility for delay or negotiation. A 25% tariff on automobiles is set to begin on April 3, following earlier tariffs on steel, aluminum, and Chinese goods.
Despite some wavering in recent months, Trump has been a strong advocate for tariffs, believing they will address trade imbalances and revitalize America’s manufacturing sector. He claims that companies can avoid tariffs by relocating to the United States.
The looming tariffs highlight the growing divide between Trump’s America and many of its closest allies, not only on trade but also on security and defense issues.