President Donald Trump proclaimed "Liberation Day" in the US on Wednesday as he prepared to impose sweeping new tariffs that would escalate a trade war with global partners, increase prices and upend a decades-old trade order.
Trump has kept the world guessing on the details of the tariff plans, which were still being formulated ahead of a White House Rose Garden announcement ceremony scheduled for 2000 GMT.
US stock indexes opened sharply lower on Wednesday, extending a selloff that has erased nearly $5 trillion of value since February.
The new duties are due to take effect immediately after Trump announces them, while a separate 25% global tariff on auto imports will take effect on April 3. As of Wednesday morning, the White House had not published an official notice of either set of tariffs, as it is required to do before they take effect. The administration also has declined to comment on reports that Trump was considering a 20% universal tariff.
Trading partners are expected to respond with actions of their own. "It will be negative the world over and the density and the durability of the impact will vary depending on the scope, on the products targeted, on how long it lasts, on whether or not there are negotiations," European Central Bank President Christine Lagarde said on Ireland's Newstalk radio.
Trump, who once called the word tariff the "most beautiful word in the dictionary," has said his reciprocal plans would match US rates with higher levels charged by other countries and counteract their non-tariff barriers that he says disadvantage US exports. Outside economists have warned that tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average US family by thousands of dollars.
Italian Prime Minister Giorgia Meloni, who has been careful to avoid criticising Trump, warned tariffs would hit Italian companies hard and also be "unfair" on American consumers.
France expected a "pretty powerful" hit that could see tariffs in the range of 20-25%.
In just over 10 weeks since taking office, Trump has imposed new 20% duties on all imports from China over fentanyl and fully restored 25% duties on steel and aluminium, extending these to nearly $150 billion worth of downstream products. A month-long reprieve for most Canadian and Mexican goods from his 25% fentanyl-related tariffs is due to expire on Wednesday. Administration officials have said that all of Trump's tariffs stack atop prior rates, so a Mexican-built car previously charged 2.5% to enter the US would be subject to both the fentanyl tariffs and the autos sectoral tariffs, for a 52.5% tariff rate -- plus any reciprocal tariff Trump may impose on Mexican goods.
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