The White House has confirmed that the new tariffs announced by US President Donald Trump will take effect immediately following their official disclosure at 4 PM Eastern Time today.
White House Press Secretary Karoline Leavitt indicated, “My understanding is that the tariff announcement will come tomorrow. They will be effective immediately, and the president has been teasing this for quite some time.”
Leavitt revealed that Trump finalized his decision on the tariff rates but refrained from giving specific details. “I don’t want to get ahead of the President. This is obviously a very big day. He is currently with his trade and tariff team, perfecting it to ensure it’s a good deal for the American people and workers. You will all find out in about 24 hours from now,” she stated.
However, several news outlets have reported that Trump’s team was still determining the size and extent of the tariffs.
Leavitt suggested that Trump is open to negotiations with other countries, saying, “Certainly, the president is always willing to take a phone call, always ready for a good negotiation, but he is very focused on correcting past wrongs and ensuring American workers receive fair treatment.”
Her statements resonate with Trump’s comments from last week, where he described the reciprocal tariffs as “very lenient,” mentioning that, in many instances, they would be “lower than the tariffs they’ve imposed on us for decades.” On Monday, the White House announced that the tariffs would be “country-based” with “no exemptions.”
In addition, Trump is anticipated to declare a 25% tariff on imported vehicles today, asserting that all cars “not made in the United States” would be subject to this duty. Bloomberg noted on Monday that various major US auto manufacturers are advocating for the exclusion of low-value parts from the upcoming tariffs.
In response to the looming tariffs, European Commission President Ursula von der Leyen remarked on Tuesday, “If necessary, we have a robust plan to retaliate and we will execute it.” Nevertheless, she underscored the EU’s intention to seek a “negotiated solution” to avert a full-scale trade war.
Global markets rebound ahead of the tariff announcement
European stock markets opened April positively after experiencing their first monthly decline of the year. The market uptick was widespread, with most sectors seeing gains on Tuesday. The Pan-European Stoxx 600 increased by 1.07%, the DAX rose by 1.67%, and the CAC 40 went up by 1.1%.
On Wall Street, both the S&P 500 and the Nasdaq closed higher, while the Dow Jones Industrial Average saw a slight decline. US stock markets have been notably impacted by Trump’s tariff intentions, with the S&P 500 entering correction territory in March. Investors are concerned that these tariffs could trigger higher inflation and slower economic growth.
Some analysts believe that once the tariffs are officially unveiled, global markets might rebound from the March sell-off driven by uncertainty. Tom Lee from Fundstrat Global Advisors told CNBC that the likelihood of a V-shaped stock market recovery is “extremely high” after April 2.
However, Michael Brown, a senior research strategist at Pepperstone London, is cautious and expects the bearish trend to continue. “Despite the intraday rally, I remain bearish on risk for now, still preferring a rally-selling approach,” he mentioned in a note.
“I view this more as the beginning than the end of the tariff saga, with countries worldwide likely to respond with their tariffs… Naturally, this will prolong the current high level of uncertainty.”
