Tougher Tariffs First: Here Is President Trump's Plan for Liberation Day
1min read Donald Trump's Liberation Day has finally arrived. As the President prepares to announce details of the reciprocal tariffs at 4 p.m. on Wednesday, the exact structure remains uncertain. Even officials are unclear, and Trump continues to keep everyone guessing. He may aim to shock the market first, using it as a negotiation tool to Make America Great Again.
On Tuesday, Trump's team continued deliberations ahead of his Rose Garden announcement. Several proposals are reportedly under consideration, including a tiered tariff system with rates of 10% or 20% based on other nations' trade barriers, a customized reciprocal plan tailored to each country's existing tariffs on U.S. goods, or a flat 20% global tariff.
Treasury Secretary Scott Bessent told lawmakers that the tariffs would serve as a cap, allowing countries to negotiate reductions. White House Press Secretary Karoline Leavitt confirmed the tariffs would take effect immediately but left room for adjustments through negotiations. "Certainly, the president is always up for a good negotiation," she said.
Ask Aime: What are the potential tariffs announced by President Trump and how will they impact the market?
The announcement, branded as a Make America Wealthy Again event, will feature Cabinet officials, lawmakers, and representatives from the U.S. steel industry. The White House has remained tight-lipped on specifics, fueling speculation among businesses and investors.
Trump has repeatedly criticized the trade practices of the EU, Japan, India, and Canada, with his administration weighing different approaches. A broad application of tariffs is expected, potentially impacting even countries without major trade imbalances with the U.S. The Wall Street Journal reported that Trump was considering a more targeted tariff of under 20% for select nations.
Despite Trump's claim that he settled on a plan "a long time ago," last-minute discussions suggest ongoing debate. The proposed tariffs, expected to be among the largest in U.S. history, could take effect as soon as 12:01 a.m. Thursday. Past tariff rollouts, including those on auto imports, have seen last-minute delays due to logistical concerns, meaning further adjustments remain possible.
Trump aims to generate $700 billion annually in tariff revenue, according to trade adviser Peter Navarro. However, economists warn that broad tariffs could raise import costs, drive inflation, and increase the risk of a recession. The fate of existing tariffs on China, Canada, and Mexico also remains unclear, as does whether exemptions granted under previous trade agreements will apply to the new levies.
While Trump has left room for negotiation, businesses and trading partners remain in suspense, awaiting further details on what could be one of the most consequential trade policies of his administration.
