US President Trump set to announce reciprocal tariffs

WASHINGTON, April 2: After weeks of White House hype and public anxiety, President Donald Trump is set on Wednesday to announce a barrage of self-described reciprocal tariffs on friend and foe alike.
The new tariffs, coming on what Trump has called “Liberation Day,” are a bid to boost US manufacturing and punish other countries for what he says are years of unfair trade practices. But by most economists’ assessments, the move threatens to plunge the economy into a downturn and upend decades-old alliances.
The White House is exuding confidence despite the political and financial gamble.
“April 2, 2025, will go down as one of the most important days in modern American history,” White House press secretary Karoline Leavitt said Tuesday. She said the new tariffs would take effect immediately.
Details of Trump’s tariff plans were unclear hours before the president’s scheduled afternoon speech. The S&P 500 stock index sold off slightly in morning trading as investors hope to have more certainty about his agenda.
The tariffs are expected to follow similar recent announcements of 25% taxes on auto imports; levies against China, Canada and Mexico; and expanded trade penalties on steel and aluminium. Trump has also imposed tariffs on countries that import oil from Venezuela and he plans separate import taxes on pharmaceutical drugs, lumber, copper and computer chips.
None of the warning signs about a falling stock market or consumer sentiment turning morose has caused the administration to publicly second-guess its strategy.
White House trade adviser Peter Navarro has suggested the new tariffs would raise $600 billion annually, which would be the largest tax increase since World War II. Treasury Secretary Scott Bessent told lawmakers the tariffs would be capped and could be negotiated downward by other countries, according to the office of Rep. Kevin Hern. (AP)