April 2 marks a significant event, as the Donald Trump tariff announcement will take place today. Interestingly, Trump has dubbed it Liberation Day, i.e., the day to apply sweeping tariffs on US imports. There’s a lot of uncertainty on how much the tariffs can be and how the countries and financial markets would react. So, let’s discuss what may happen today.
Donald Trump Tariff Announcement Details
The Donald Trump tariff announcement is set for today at 4 p.m. E.T. in the White House Rose Garden. Here, the 47th U.S. President, Trump, will reveal his new tariff plans, which could impact the U.S. economy and world trade. Trump’s Liberation Day is set to witness tariffs as high as 20% on imports.
The President argues that these tariffs are needed to counteract the impact of free deals on the country. He points out that these deals have created a $3 trillion U.S. market for the imported goods, hurting American workers and manufacturers.
Ongoing Trump’s Imposed Tariff and Their Effect
Interestingly, tariffs are no new news, as Trump has already imposed tariffs on various countries. It includes a 20% tariff on selected imports from China and a 25% tariff on Canada and Mexico, which may potentially increase with Donald Trump tariff announcement.
In addition, there’s also a discussion on the tariff on Russia and much more. These events have resulted in major turmoil for the financial markets. As the investors’ sentiments have been continuously affected, the stock and crypto market crashed after these implications.
Even today, the crypto market is battling the fearful sentiments of the investments impacting the performance. This creates concerns on what’s coming next, as Trump wishes to create a goods trade deficit that exceeds $1.2 trillion.
What to Expect From Donald Trump Tariff Announcement Today?
Experts believe that Donald Trump tariff announcement is the largest escalation event, as new tariffs would come nearly 10x larger than the first term. The first tariff targeted $380 billion in goods, but the target for today’s is over a trillion dollars, as the White House is potentially considering a universal 20% tariff.
This means applying a 20% tariff on all imports regardless of the country of origin. In addition, country-specific tariffs for the nations with the largest trade surpluses against the U.S may also take place.
Not to mention the matching reciprocal tariff for the countries that have tariffs on U.S. exports. Something that concerns experts is that if Donald Trump announced the 20% universal tariff, it could affect over $1 trillion worth of goods.
For many years, the U.S. has been treated unfairly by other Countries, both friend and foe. This System will immediately bring Fairness and Prosperity back into the previously complex and unfair System of Trade,” posted Donald Trump
More importantly, it could trigger retaliatory measures from global trading partners. Notably, these Donald Trump Liberation Day tariffs are to go live immediately, making it more concerning.
“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 before revealing that the new tariffs will take effect immediately.
Economic & Market Reactions to Liberation Day
The economists and investors are concerned due to the previous crash in the financial market. Everyone’s eyes are on today’s Donald Trump tariff announcement as experts believe the tariff may spark a global trade war, inflation, recession, and much more.
If that happens, we get a serious recession. It’s a wipeout for the economy.
This is because experts like Moody’s Analytics chief economist Mark Zandi anticipate that nearly 5.5M U.S. jobs could be lost due to increased costs for businesses dependent on imports. Additionally, tariffs often lead to an increase in the price of everyday goods, so it’s going to affect the commoners’ pockets.
Experts like Goldman Sacks increased the U.S. recession probability to 35%. Moreover, the crypto and stock markets may witness immediate effects. Some even anticipate a Bitcoin price crash and declines in the rest of the market.
Although the investors’ fears persist, the White House insists that this trader tariff would benefit the country by reducing the dependence on foreign goods. More importantly, it will boost domestic manufacturing.
Trump added that this decision would protect American jobs and industries from foreign competition. More importantly, it will strengthen national security, generate government revenue to offset tax cuts and spending initiatives, and much more.
How are Other Countries Reacting to America’s Tariff Plans?
If the Donald Trump tariff announcement meets expectations, it will become the most aggressive trader protectionism policy since the 1890s. The critics have warned that such policies can backfire, weakening global trade relationships and leading the country to stagflation.
Even before the announcement, the ripple effect of Trump’s trade war was visible worldwide. Reports reveal that China has vowed to implement counter-tariffs on U.S. exports. Similarly, the EU, Japan, and others are also working to impose reciprocal measures.
U.S. trade allies like Israel have taken different measures, eliminating tariffs on American imports to avoid conflicts. However, countries like Canada and Mexico could bear a $1.4 trillion loss due to the trade war. Developing countries like India, Brazil, Vietnam, and others may struggle to export to the U.S.
Donald Trump Tariff Announcement Today, What Comes Next?
Donald Trump’s tariff announcement today at 4 p.m. E.T. has the world’s attention as it could affect global trade. Although Trump has claimed this plan is final, some sources suggest last-minute changes might happen before the announcements.
Regardless of the events, today’s Liberation Day could become the turning point for America’s trade policy. This could either become Trump’s dream Golden Age of America or a global economic storm.
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