Trump set to unveil tariff plan as markets brace for impact
Shafaq News/ US President Donald Trump is expected to unveil his long-awaited tariff plan on Wednesday, a move that could reshape global trade and heighten tensions with key partners.
After months of uncertainty, Trump has promised to clarify his stance on what he calls “reciprocal tariffs.” While he told reporters on Monday that he had “settled” on a plan, White House advisers continued presenting him with options on Tuesday.
Among the proposals under consideration are varying tariff rates for each trading partner, targeted tariffs on select countries, or a flat duty as high as 20% on all imports. A White House official said a final decision may not be reached until just before Trump’s 4:00 p.m. ET (20:00 GMT) announcement at the Rose Garden.
Any tariffs announced will take effect immediately, White House press secretary Karoline Leavitt said on Tuesday.
Trump has linked his tariff policies to curbing fentanyl imports, reducing illegal migration, balancing trade, increasing government revenue, and boosting US manufacturing.
He has already imposed 20% tariffs on Chinese imports and threatened 25% duties on goods from Canada and Mexico. His administration argues that higher duties are necessary to counteract what it sees as unfair trade practices, including value-added taxes (VATs) and digital services taxes (DSTs) imposed by other countries.
Developing economies such as India, Brazil, Vietnam, and Indonesia could be hit hardest, as they impose higher tariffs on US goods than the United States does on theirs, according to a Morgan Stanley analysis. But European nations, which apply VATs and DSTs, could also face new restrictions.
European Commission President Ursula von der Leyen warned on Tuesday that the EU has “a strong plan” to respond if targeted by US tariffs. Other countries, including Canada, Mexico, China, Japan, and South Korea, are also preparing retaliatory measures.
Chinese Foreign Minister Wang Yi said in comments published Tuesday by state broadcaster CCTV that Beijing would “counterattack” if the US continues to apply pressure.
In a rare move, Israel announced on Tuesday that it would eliminate all tariffs on US imports, becoming the first country to do so since Trump’s re-election. The decision, likely an attempt to avoid being targeted, has little economic impact due to Israel’s already low tariff rates on American goods.
Despite such concessions, Trump has already enacted 25% tariffs on steel and aluminum imports and is set to impose the same rate on foreign cars starting Thursday, with a 25% tariff on auto parts expected by early May. Additional sector-wide tariffs could be announced on Wednesday.
Trump has argued that tariffs could allow the US to rely less on income tax revenue, even suggesting they could replace it entirely. However, economists have warned that the measures could disrupt global supply chains and slow economic growth.
