Sweeping import tariffs have some worried
Here’s what to know as Trump’s sweeping tariffs arrive.
President Donald Trump has referred to April 2 as “Liberation Day” since he assumed the nation’s highest office in January.
Trump is expected to enact reciprocal tariffs on major trading partners on Wednesday, particularly those that contribute the most to the $1.2 trillion U.S. trade deficit.
“Over the decades, they ripped us off like no country has never been ripped off in history and we’re going to be much nicer than they were to us, but it’s substantial money for the country,” Trump told reporters on Sunday night, according to ABC News.
Treasury Secretary Scott Bessent said on Fox News earlier this month that Wednesday’s announcement will focus on reciprocal tariffs imposed on countries he called the “Dirty 15.” White House Economic Adviser Kevin Hassett told the network in a subsequent interview that the focus of the tariffs would be on 10 to 15 countries.
Trump told reporters on Air Force One on Sunday that the tariffs would start on “essentially all of the countries that we’re talking about.”
The Trump administration has already levied a 25% tariff on imported steel and aluminum, a 25% tariff on goods from Mexico and Canada and a 25% tariff on all imported automobile and automobile parts. He has also threatened several other countries including traditional allies in the European Union with other steep tariffs ‒ even on European wine.
Here’s what we know about what’s to come on Wednesday.
Will prices rise due to coming tariffs?
Likely yes.
Economists have previously told USA TODAY that tariffs, when broadly applied, raise consumer prices for goods. The same economists were mixed on if the tariffs would achieve Trump’s goal of increased domestic manufacturing by making it more expensive for companies to ship products into the U.S.
In all industries affected by Trump’s tariffs during his first term, the duties boosted factory employment by 0.4% by protecting certain sectors from imports but reduced payrolls by 2% by harming the many more fields affected by rising costs, a Federal Reserve study concluded.
What is going to be announced on Wednesday?
The details of what will be announced Wednesday remain unclear.
Trump called the announcement “a big one” in a post on Truth Social, a sign that it may be the realization of his “America First Trade Policy” outlined in a day-one executive order.
CNN reported Monday that the announcement will be made in the Rose Garden with the Cabinet present.
Wednesday’s announcement will come the day after the first major electoral test of Trump’s second term, with two Florida House seats vacated by administration appointees to be decided and a proxy referendum on Elon Musk to take place in a hotly contested Wisconsin state Supreme Court seat.
Contributing: Paul Davidson, Joey Garrison, Lori Comstock, USA TODAY, and Reuters