Trump Tariff Highlights: Trump claims US in ‘driver’s seat’ after tariff announcements, says ‘now they will do anything for us’

Canadian lawmaker Taylor Bachrach told CNN that his country was resolved to take care of its workers and push back against the US as Donald Trump geared up to announce sweeping tariffs.

The US economy is facing a growing risk of recession amid surging tariffs. According to a warning issued by Goldman Sachs this week, there is now a 35% chance of a recession within the next 12 months. The number is a sharp rise from the 20% risk that was previously projected. It also increased its inflation estimates and slashed its GDP forecast for 2025 to 1%.

House Minority Leader Hakeem Jeffries claimed that President Donald Trump’s plan to impose sweeping tariffs would trigger a recession.

“Trump tariffs are going to make things more costly in the United States. Republicans are crashing the American economy in real time and driving us to a recession. This is not Liberation Day, it’s Recession Day,” CNN quoted him as saying during a news conference.

Top White House aide Peter Navarro said recently that he expected the tariffs introduced by Donald Trump to bring in $6 trillion in revenue over the next decade. This could amount to the largest tax hike in US history. The official however insisted that this was not a tax increase but a tax cut and reiterated the Trump administration’s insistence that tariffs will ‘make America great again’.

Mexican President Claudia Sheinbaum insisted on Wednesday that her country would not impose retaliatory tariffs against the US ahead of the ‘Liberation Day’ announcement. She indicated that Mexico would unveil a comprehensive economic strategy on Thursday rather than engaging in a tit-for-tat trade war with its neighbour.

According to an update shared by NBC News, Trump is likely to be joined in the Rose Garden by workers from various affected industries. A senior White House official told the publication that the guest list included “steel workers, autoworkers, oil and gas workers, steam fitters, truck drivers, and hardworking Americans from a variety of trades”.

President Donald Trump’s 25% automobile tariffs are due to take effect at 12:01 a.m. ET on Thursday. Reuters quoted a post in the Federal Register to add that the tariffs were due to take effect ‘no later than May 3’.

According to a PTI report quoting sources, the Indian Commerce Ministry is working on four possible scenarios to assess the potential fallout from the announcements. The White House has remained close-lipped about the quantum and manner in which these levies will be imposed with some reports suggesting that there could be roughly 20% tariff on most imports.

The Indian government has reportedly set up a control room to monitor situation as President Donald Trump gears up to announce reciprocal tariffs. According to a PTI report quoting sources, senior officials from various ministries including Commerce and Industry will be present to watch the announcements closely.

A person familiar with the deliberations told Reuters said the tariffs are expected to be significant and would hit a wide range of countries, including close allies.

The new duties, which would undo trade arrangements in place since 1947, are due to take effect immediately after Trump announces them. A separate 25% global tariff on auto imports will take effect on April 3. The White House has not yet published an official notice of either set of tariffs

The US Senate is slated to vote later on Wednesday on a Democrat-led resolution to undo the ‘national emergency’ declared by the President in order to create a legal rationale for the tariffs against Canada. The resolution is largely symbolic and unlikely to succeed as it would require approval from the Republican-controlled House as well as the signature of Donald Trump to become law. The development comes even as the world braces for the POTUS to announce sweeping reciprocal tariffs against ‘all countries’.

US President Donald Trump has heralded April 2 as ‘Liberation Day’ for Americans — teasing plans to announce reciprocal tariffs that will affect ‘all countries’. He is expected to make the announcement from the Rose Garden of the White House around 4 pm Washington time. The time estimate shared by US Treasury Secretary Scott Bessent indicate that people in India will be able to catch the livestream around 1:30 am IST on April 3.

US President Donald Trump has reportedly finalised his plans ahead of the reciprocal tariffs announcement. White House officials told CNBC that the POTUS had made a ‘final decision’ on how he wants to proceed with the levies. This appears to conclude the lengthy internal deliberations ahead of the announcement.

The US Trade Representative’s office has drafted a third tariff proposal, according to The Wall Street Journal.

This plan would impose a tariff below 20%, targeting only a select group of trade partners.

Meanwhile, the White House is also considering two other options:

1. A universal flat tariff applied to all trading partners.

2. A country-specific tariff system, where rates vary based on the administration’s assessment of each nation’s trade barriers against U.S. goods.

Hours ahead of Trump’s tariffs announcement White House underscores America First agenda.

Ontario Premier Doug Ford offered to immediately eliminate retaliatory tariffs on U.S. goods if the Trump administration rescinds its import duties on Canadian products.

Ford stated on CNBC that Canada is prepared to remove tariffs on over $20 billion worth of U.S. steel and aluminium, and an additional $30 billion in broad-based tariffs, as soon as the U.S. lifts its own.

“The foundation of Japanese automakers’ U.S. sales—affordable economy cars built with low-cost Mexican production—is under threat from President Trump’s impending 25% auto import tariffs, set for April 3.

Experts warn that Nissan, Honda, and others may be forced to raise prices, impacting price-sensitive consumers. This poses a significant challenge, especially for Nissan, which heavily relies on both the U.S. market and Mexican manufacturing. In 2023, Japanese automakers exported nearly 880,000 vehicles from Mexico to the U.S., with Nissan accounting for over a third of that volume, according to Mexican statistics.”

The U.S. administration’s tariff hikes should not derail an ongoing decline in inflation in Europe, ECB policymaker Francois Villeroy de Galhau said on Wednesday, adding that the fall boosted the case for a fresh interest rate cut.

Euro zone inflation eased last month, in line with expectations, to 2.2%, zeroing in on the European Central Bank’s 2% target, Eurostat data showed on Tuesday.

“This should give us more confidence to cut interest rates again soon,” Villeroy, who is also head of the French central bank, told French regional newspaper Midi-Libre.

“Trumps tariffs shouldn’t significantly change the disinflation in Europe,” he said.

(With Reuters Inputs)

President Trump will host workers from key industries—including steel, auto, oil and gas, and trucking—in the Rose Garden to highlight support for his reciprocal tariff plans.

These workers represent sectors expected to be directly impacted by the tariffs, according to a White House official.

US crude oil stockpiles surged last week by 6.2 million barrels, significantly exceeding expectations, as refinery utilisation fell and imports increased, according to the Energy Information Administration (EIA). This rise, amid anticipation of new Trump administration tariffs, contrasts with analysts’ predictions of a 2.1 million-barrel draw. The EIA also reported a 2.4 million-barrel increase at the Cushing, Oklahoma, hub and a 999,000 barrel-per-day rise in net U.S. crude imports.

Trump has made a final decision on how he wants to proceed with his sweeping reciprocal tariff plans, a White House official told CNBC’s Megan Cassella.

The update marks an apparent end to the internal deliberations that were reportedly ongoing in the hours before the Wednesday afternoon announcement event.

Trump has also considered a flat 20 percent tariff on all trading partners. Such a levy would be aimed more at generating revenue, according to the New York Times. Estimates by the Budget Lab at Yale, a research center, found that tariffs at that level would cost U.S. households $3,400 to $4,200 annually, money that the Trump administration has promised to channel into tax cuts.

A day before the US’s reciprocal tariffs take effect on April 2, India has agreed to the Terms of Reference (ToR) for the Bilateral Trade Agreement (BTA) with the US, following intervention from the Prime Minister’s Office (PMO).

As of Saturday, the finalisation of the ToR was still pending when US negotiators concluded four days of talks in India. However, both nations are now set to begin formal negotiations, with India likely to reduce tariffs on American goods in return for US concessions, as reported by The Indian Express.

Donald Trump’s core policy positions, including imposing import tariffs, expanding US territory claims, retracting security guarantees, reducing government spending, deporting undocumented immigrants, and cutting taxes alongside deregulation, present significant economic risks. Analysis suggests these stances could negatively impact the US economy.

With 28 per cent of India’s textile exports ($9.6 billion in FY24) destined for the US, reciprocal tariffs under a potential Trump administration pose a significant risk.

The impending US tariffs under the Trump administration pose a significant risk to India’s jewellery sector, which relies on the US for 30% of its exports. While India maintains a 20% tariff on gold jewellery imports, the US rate is only 5.5-7%. Additionally, the current duty-free access for Indian cut and polished diamonds to the US could be jeopardised by increased tariffs.

Trump Tariff concerns: Can India limit the damage

With Donald Trump set to announce reciprocal tariffs, UK Finance Minister Rachel Reeves stated that Britain will not take immediate countermeasures, as it seeks to avoid jeopardising a potential trade deal with Washington.

“The government has been very clear that we will approach this in a measured way, always prioritising the national interest,” Reeves told lawmakers in Parliament.

She emphasised that UK exporters prefer a cautious approach. “This morning, the Business and Trade Secretary and I met with major UK exporters. They don’t want the government to rush into a response because the ultimate goal is securing an economic agreement. We don’t want to undermine that or get ahead of ourselves,” she added.

The European Union is preparing a package of potential emergency measures to support parts of its economy that could be hit the hardest by US President Donald Trump’s reciprocal tariffs, reports Bloomberg.

As Trump prepares to impose ‘reciprocal tariffs’ on multiple countries, Mexican President Claudia Sheinbaum has stated that Mexico will not retaliate with counter-tariffs. “Will not impose tit-for-tat tariffs,” said Sheinbaum.

This comes after Trump’s announcement of a 25% tariff on goods imported from Mexico and Canada.