WASHINGTON (AP) — Following weeks of White House promotion and rising public concern, President Donald Trump is poised to unveil a series of self-proclaimed “reciprocal” tariffs on both allies and adversaries on Wednesday.
The upcoming tariffs — coinciding with what Trump has dubbed “Liberation Day” — aim to enhance U.S. manufacturing while penalizing other nations he claims have engaged in unfair trade for years. However, most economists warn that this bold approach risks dragging the economy into a downturn and jeopardizing long-standing alliances.
Despite the political and financial risks involved, the White House is projecting confidence.
“April 2, 2025, will be remembered as a pivotal day in modern American history,” White House press secretary Karoline Leavitt stated during Tuesday’s briefing, noting that the new tariffs will be enacted without delay.
The reciprocal tariffs that Trump plans to announce follow closely after recent declarations of 25% taxes on auto imports, tariffs aimed at China, Canada, and Mexico, as well as extended tariffs on steel and aluminum. Trump has also imposed tariffs against nations importing oil from Venezuela and intends to establish separate import taxes targeting pharmaceutical drugs, lumber, copper, and computer chips.
Warnings regarding a declining stock market and a dip in consumer sentiment have not led the administration to reconsider its strategy publicly.
Peter Navarro, White House trade adviser, indicated that the new tariffs could generate $600 billion annually, marking the most significant tax increase since World War II. Treasury Secretary Scott Bessent informed lawmakers that the tariffs would have limits and could potentially be negotiated down by other nations, according to Rep. Kevin Hern’s office (R-Okla.). However, the White House has not confirmed these policy specifics, even though Trump declared on Monday that he had reached a decision.
Importers are likely to pass on part of the tax burden to consumers, with the Budget Lab at Yale University estimating that a universal 20% tariff could cost the average household an additional $3,400 to $4,200.
The administration believes that manufacturers will swiftly respond by ramping up domestic production and generating new factory jobs, with the White House firmly asserting that Trump’s strategy is fundamentally sound.
“They won’t be mistaken,” Leavitt affirmed. “This strategy will yield results. The president has an exceptional team of advisers who have devoted decades to studying these issues, and we are committed to restoring America’s golden age and elevating the country to manufacturing superpower status.”
Such unwavering optimism has offered little comfort to the public or allies, who view the import taxes as an alarming threat.
Proposals regarding widespread 20% tariffs, mentioned by certain White House aides, have led to analyses predicting an economy marred by rising prices and stagnation. The Budget Lab’s assessment suggests U.S. economic growth, as indicated by GDP, could drop by roughly a percentage point, resulting in higher costs for clothing, oil, automobiles, housing, groceries, and even insurance.
Trump would impose these tariffs unilaterally, utilizing his legal authority, enabling Democratic lawmakers and policymakers to criticize the Republican administration if business uncertainty and weakening consumer sentiment signify impending troubles.
Heather Boushey, a former member of the Biden White House’s Council of Economic Advisers, remarked that the less aggressive tariffs imposed during Trump’s first term did not trigger the manufacturing boom he assured voters.
“We aren’t witnessing any signs of the resurgence the president promised,” Boushey declared. “This strategy has proven ineffective.”
Senate Democratic leader Chuck Schumer of New York suggested that the tariffs are essentially a means for Trump to generate revenue to fund his proposed income tax cuts, which he argues favor wealthy individuals disproportionately.
“Everything they do, including the tariffs, appears to be aimed at securing tax cuts for the affluent,” Schumer stated on the Senate floor on Tuesday.
Even GOP members who trust Trump’s decisions have conceded that the looming tariffs could disrupt an economy currently experiencing a healthy 4.1% unemployment rate.
“We’ll observe how this unfolds,” said House Speaker Mike Johnson (R-La.). “It may be tumultuous initially, but I believe this will ultimately make sense for Americans and benefit every American.”
Longtime trading partners are gearing up for their own counteractions. Canada has already implemented some responses to the 25% tariffs Trump linked to fentanyl trafficking. In retaliation for steel and aluminum tariffs, the European Union imposed taxes on U.S. goods worth 26 billion euros ($28 billion), including bourbon, which led Trump to threaten a 200% tariff on European alcohol.
Many allies feel they have been reluctantly drawn into a confrontation by Trump, who frequently states that both friends and enemies have effectively exploited the United States through tariffs and other trade barriers.
On the contrary, Americans possess the means to choose luxury items from French fashion brands and vehicles from German manufacturers, while World Bank data indicates that the EU has lower per capita incomes compared to the United States.
“Europe didn’t initiate this confrontation,” stated European Commission President Ursula von der Leyen. “We do not necessarily want to retaliate, but if required, we have a strong plan to respond, and we will implement it.”
With Trump promoting his tariffs without providing detailed information, he has contributed to a sense of uncertainty worldwide, suggesting that the economic slowdown may extend beyond U.S. borders, implicating one individual as the cause.
Ray Sparnaay, general manager of JE Fixture & Tool, a Canadian manufacturing company located near the Detroit River, expressed that the uncertainty has severely hindered his business’s planning capabilities.
“Tariffs are on the horizon; we just don’t have clarity right now,” he commented on Monday. “That has been one of our most significant challenges since November — the uncertainty. It has essentially hampered all our quoting processes and stalled business opportunities we hoped to secure.”
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Associated Press reporters Lisa Mascaro in Washington and Mike Householder in Oldcastle, Ontario, contributed to this report.
