Tue, 01 Apr 2025

Tue, 01 Apr 2025 Three big unknowns ahead of Trump's 'Liberation Day' tariffs

The president is expected to unveil details of his plans for a wider set of import taxes. But what tariffs and when?

* The US has already imposed tariffs on Chinese imports, steel and aluminium, as well as some goods from Canada and Mexico
* Higher levies on cars are set to take effect this week
* Trump is expected to unveil a plan for wider tariffs on Wednesday, which his team has been developing over the past few weeks
* The White House is calling it "Liberation Day"
* The exact rates of the new tariffs have not been confirmed, but analysts have suggested possible rates ranging from 10% to 60%
* Trump's plan may include reciprocal tariffs that vary country by country, taking into account other policies deemed unfair to US businesses
* Businesses and leaders are scrambling to understand the impact of the new tariffs on their products and how they will interact with existing duties
* The EU is preparing for a double-digit tariff on its exports to the US
* It's unclear whether the tariffs will be universally applied or more targeted, but Trump has hinted at applying them "all countries"
* Efforts are focused on the "Dirty 15" - the 15% of countries that account for the bulk of trade with the US and impose tariffs or other rules that put US firms at a disadvantage
* Firms will likely face the bill for the new tariffs, but may try to offset costs by changing suppliers or raising prices for Americans
* The dynamics have raised the risks of an economic recession both in the US and globally
* EU chief Ursula von der Leyen says US tariffs will see "uncertainty spiral" as world leaders react to Trump's announcement.
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