Trump May Delay Some Tariffs as "Liberation Day" Plan Narrows
1min read The White House is refining its tariff strategy ahead of the April 2 rollout, shifting from a broad-based approach to a more targeted one. Stocks surged on the news, with Nasdaq 100 futures jumping over 1%.
While the administration is still expected to announce widespread reciprocal tariffs on that day, sector-specific tariffs on industries like automobiles, pharmaceuticals, and semiconductors may be postponed.
Trump has dubbed April 2 "Liberation Day" for the U.S., a day when he intends to implement tariffs aimed at matching those imposed by trading partners. However, officials familiar with the planning say the administration is now focusing on a narrower set of countries with persistent trade imbalances, referred to as the dirty 15 by Treasury Secretary Scott Bessent. These countries, including major trade partners like China, Japan, Canada, and the European Union, are expected to face higher tariffs, while others may see more moderate increases.
Ask Aime: What impact will the refined tariff strategy have on the market?
The administration had previously considered a three-tiered tariff structure or an across-the-board flat tariff but has since shifted toward individualized tariff rates for targeted nations. While Trump had initially planned to impose sector-specific tariffs alongside the reciprocal tariffs, officials now indicate that such measures are unlikely to be part of the April 2 announcement. Auto tariffs, for example, are still under consideration but may be implemented separately at a later date.
Despite this scaling back, Trump remains committed to making tariffs effective immediately. His team is reportedly prepared to use emergency economic authority to implement the measures on April 2, though final decisions have yet to be made. Some industry leaders and U.S. allies, including Canada and Mexico, are pushing for negotiations to reduce the impact, but officials suggest that few exemptions will be granted.
Trump's shifting stance on exemptions underscores the ongoing internal debate. While he recently told oil executives that he did not want to grant exceptions, he later acknowledged that flexibility is an important word and hinted that some carve-outs could still be possible.
Even with these adjustments, the new tariff structure could significantly raise import duties on some of the U.S.'s largest trading partners, marking one of the most aggressive tariff policies in decades. However, the postponement of sector-specific tariffs may provide temporary relief to industries bracing for supply chain disruptions.
