April 2 Liberation Day: There has been a lot of anticipation around April 2, which has been promoted as ‘Liberation Day’ for America by the US President Donald Trump. The POTUS is set to announce a range of tariffs which he has repeatedly suggested will transform the US economy for good. This is the day when Trump will impose reciprocal tariffs on countries that levy duties on US goods.
Trump will make the tariff announcement in a press conference at the Rose Garden, White House secretary Karoline Leavitt said on Monday. She added that the entire cabinet will be present at the event, reported CNN.
Leavitt said that Trump will reveal a tariff plan which is aimed at addressing the unfair trade practices that have negatively impacted America for years. The decision has been taken keeping in mind the “best interest of the American worker”.
What to Expect on April 2 – Liberation Day?
Although what will be announced, remains unclear at this point of time, Trump and his administration have given mixed signals over the past few weeks.
According to Washington Post, new tariffs could potentially impact the trade worth trillions of dollars. Treasury Secretary Scott Bessent explained that these tariffs would target products from the 15% of countries that the US considers the worst trading partners, as per Washington Post. These countries make up nearly 90% of US imports.
In addition to this, Trump has already placed other tariffs on imports from all countries, but only on certain industries. For example, he recently put a 25% tariff on all automobile imports and has suggested similar actions for pharmaceuticals and lumber, the Washington Post reported.
Though some reports suggest the tariffs may affect only a few countries, Trump recently stated that he might impose reciprocal tariffs on all nations initially, with the possibility of scaling them down if necessary. Trump has already confirmed that auto tariffs will go into effect on April 3.
Leavitt mentioned that Trump continues to work with his advisers to finalise the details, and the official announcement will likely clarify the full scope of the plans.
Leavitt said that Trump has a “brilliant team of trade advisers” including Vice President JD Vance, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, US Trade Representative Jamieson Greer, and trade adviser Peter Navarro among others.
Leavitt added that all of them have presented their plans to the POTUS on how this can be carried off, but ultimately the decision lies with the President.
$600 billion a year from tariffs?
Navarro on Sunday said that he believes the US could make $600 billion a year from tariffs, which would be the largest tax increase since World War II. However, this estimate is questionable, CNN said.
The report further added that the tariffs are meant to encourage Americans to buy products made in the US to avoid paying extra taxes on foreign goods. But economists warn that tariffs could raise prices on many products, leading some Americans to cut back on spending or stop buying certain items altogether. This could end up hurting the economy.
The tariff threat has already led to a drop in consumer confidence, and analysts from Goldman Sachs and JPMorgan have said that the chances of a US recession are increasing day by day.