Three key uncertainties as Trump’s tariffs take effect

Trump’s tariffs are set to take effect “immediately.” He has repeatedly referred to April 2 as “Liberation Day,” hinting at major tariff announcements. However, several uncertainties remain. Here’s a breakdown of the key points.

Trump has already increased duties on goods from Canada, Mexico, China, as well as steel and aluminum imports. On April 3, a 25% tariff will be added to existing duties on imported vehicles.

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Trump’s Tariff Strategy and Global Trade Impact

Trump will reveal his tariff plans at the ‘Make America Wealthy Again’ press conference in the White House Rose Garden on Wednesday at 4 pm (20:00 GMT). A key focus of his vision is implementing universal tariffs on all US imports, affecting all countries.

Trump had entrusted his economics team with the task of coming up with plans for reciprocal tariffs on every country that taxes US imports, as well as to counteract on non-tariff barriers like vehicle safety rules that exclude American autos, and value added tax (VAT) that increase US cost.

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Trump advisors have pitched the imposition of a 20 per cent global tariff on all US trading partners, the Wall Street Journal reported. However, the White House suggested Monday they might be “country specific”.

The US President had earlier said that the tariffs would be less than what other countries would be charging the US, adding that “we sort of have a world obligation perhaps”. While speaking in the Oval Office, he said, “We’re going to be very nice, relatively speaking, we are going to be very kind,” according to an AFP report.

Critics have reportedly warned that Trump’s strategy risks the potential of a global trade war, prompting a chain reaction from the US major trading partners like the European Union, Canada and China.

On Sunday, Trump said he could impose tariffs on “all countries.” He hinted at the possible return of the ‘across-the-board’ tariff he supported during his presidential campaigns.

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