President Donald Trump is expected to unveil a broad set of global tariffs on Wednesday afternoon, a move he claims will restore fairness to international trade.
With the announcement set for 2 pm MST in the White House Rose Garden, Trump’s tariffs could have major repercussions for global markets and international relations.
For months, Trump has vowed to impose “reciprocal” tariffs, which he says are needed to address what he calls “lopsided trade practices.”
In his view, many countries have been “ripping off” the US for years.
“We helped everybody, and they don’t help us,” said Trump on March 31.
Details of Trump’s new measures remain unclear.
The White House press secretary indicated on Tuesday that while the president had chosen a specific plan, negotiations over the “finer points” were ongoing.
She also stated the tariffs would go into effect immediately, although she stopped short of outlining how that would work.
Among the possibilities Trump has publicly suggested is a model where tariffs mirror those placed on US goods by foreign governments.
Under this approach, if one of the US trading partners charges a 10% tariff on US goods, that country would face a 10% tariff when exporting to the US.
Another idea, which Trump has also suggested is a flat 20% tariff on all trading partners, designed partly to generate extra revenue to help balance the federal books.
Regardless of the final structure, the new levies will likely escalate trade tensions worldwide.
Trump has already imposed a series of tariffs, including some aimed at imports from China, Canada, and Mexico.
Trump also announced tariffs on autos and auto parts, which are scheduled to take effect on Thursday.
Several countries have already retaliated.
Canada and China responded to earlier US tariffs by slapping their own duties on American goods.
Meanwhile, European nations and Mexico have hinted that they could follow suit as soon as they learn more about the new measures.
European officials have discussed targeting services, using a trade tool developed in 2021.
This mechanism could allow them to penalize American tech giants such as Google or Meta, as well as US banks.
Critics warn that a chain reaction of retaliatory tariffs could push the global economy closer to recession.
Imported goods and production materials would cost more, forcing businesses to weigh price hikes that could hurt consumers.
Trump has largely dismissed these concerns.
Officials maintain that foreign companies will shoulder higher costs for the “privilege” of selling to the US market.
Economists and industry leaders say that the reality is more complicated, noting that importers typically pass increased costs to consumers.
Trump argues that tariffs will attract manufacturers back to the US, and he frequently uses examples from semiconductor firms, automakers, and others that plan to invest in American facilities.
However, economists caution that tariffs can hamper growth by driving up prices.
Major companies, which often rely on complex global supply chains, have already felt the pinch.
Market volatility is surging, as uncertainty about long-term costs and trade rules grows.
Analysts at Goldman Sachs recently increased their year-end inflation forecast and cut their growth outlook for 2025, due to the escalating tariff threats.
Goldman Sachs suggested that the chance of a recession in the next year went up to 35%, up from only 20% a few months ago.
One reason, they wrote, is the White House’s apparent willingness to risk short-term harm if it means pushing through its trade agenda.
Despite the warnings, the White House remains upbeat.
Karoline Leavitt, Trump’s press secretary, said on Tuesday that the US is “focused on restoring the golden age of America and making America a manufacturing superpower.”
This “golden age of America” may come at a steep price.
If retaliatory measures widen, consumers could bear the brunt through higher prices on everyday items, while farmers and other exporters may find foreign markets less welcoming.
Trump’s announcement promises to be another pivotal moment in a presidency already marked by contentious trade policies.
Within hours of Wednesday’s event, the rest of the world will know whether the president has indeed pulled the trigger on his most sweeping tariffs yet and how far other nations are prepared to go in response.