Dhaka, April 2 — Following weeks of anticipation from the White House and public concern, President Donald Trump plans to unveil a series of so-called “reciprocal” tariffs on both allies and adversaries on Wednesday.
The fresh tariffs – introduced on what President Trump refers to as “Liberation Day” – aim to bolster American manufacturing and penalize other nations for their alleged long-standing unfair trading habits. However, according to many economic experts, this high-stakes strategy could potentially lead the economy into a recession and disrupt longstanding international partnerships.
Despite the significant political and financial risks involved, The White House remains confident.
“On April 2, 2025, we will mark an essential date in contemporary American history,” stated White House Press Secretary Karoline Leavitt during Tuesday’s briefing, noting that the new tariffs would be implemented right away.
The retaliatory tariffs that President Trump intends to unveil mirror previous declarations of 25% duties on car imports; additional charges imposed on China, Canada, and Mexico; as well as increased tariffs on steel and aluminum products. Furthermore, Trump has proposed imposing fees on nations importing crude from Venezuela and separately planned for extra import taxes on medications, timber, copper, and semiconductors.
Neither the warning signals regarding a declining stock market nor the pessimistic shift in consumer sentiment has led the administration to openly question their approach.
Peter Navarro, an advisor for international trade at the White House, claimed that the proposed tariffs would generate approximately $600 billion each year, marking what could potentially become the biggest tax hike since WWII. According to Representative Kevin Hern’s office, Treasury Secretary Scott Buessent informed legislators that these tariff rates would have limits and might be reduced through negotiations with other nations. However, the administration has not yet provided specific policies regarding this matter, even though President Trump stated on Monday that he had reached a conclusion on the issue.
Importers might probably transfer part of the tax burden to customers. According to estimations from the Budget Lab at Yale University, implementing a 20% across-the-board tariff could result in an extra expense for typical households ranging between $3,400 and $4,200 annually.
The administration’s assumption is that companies will rapidly boost local manufacturing and generate new employment opportunities through factory work, with the White House showing faith that President Trump’s strategy is entirely justified.
“They won’t be mistaken,” Leavitt stated. “This plan will succeed. The president has an exceptional group of advisors with extensive experience spanning several decades. Our aim is to revive the golden era of America and transform it into a leading manufacturing powerhouse.”
The confident optimism has failed to calm the concerns of both the public and allies who view the import tariffs as a potential danger.
Asian markets recover following gains on Wall Street due to worries over tariffs
Given the potential for widespread 20% tariffs suggested by certain advisors within the White House, many evaluations predict a weakened economy characterized by increased costs and sluggishness. The study from Budget Lab indicates that U.S. economic expansion—as indicated by GDP—could decrease by approximately one percent, with notable price hikes anticipated across various sectors including apparel, petroleum, vehicles, real estate, food items, and even insurance premiums.
Trump could implement these tariffs independently because he possesses legal means to do so without seeking congressional consent. This situation allows Democratic legislators and policy experts to readily critique the GOP-led government, particularly if the apprehension shown by companies and the drop in consumer confidence indeed indicate future problems.
Heather Boushey, who was part of the Biden administration’s Council of Economic Advisers, pointed out that the milder tariffs implemented by Trump during his first term did not trigger the manufacturing resurgence he had pledged to deliver to voters.
Boushey stated that they aren’t observing the economic upturn the president had pledged. It’s clear that this approach has proven ineffective.
Senate Majority Leader Chuck Schumer from New York stated that the tariffs were essentially a means for President Trump to generate additional revenue with the aim of funding proposed expansions of income tax breaks that would predominantly benefit millionaires and billionaires.
“It appears to me that nearly every action they take, such as imposing tariffs, is geared toward providing tax breaks for the rich,” Schumer stated on the Senate floor on Tuesday.
Despite trusting Trump’s intuition, even Republican supporters have admitted that these tariffs might cause significant disruption to an economy that otherwise enjoys a robust 4.1% unemployment rate.
Let’s observe how everything unfolds,” stated House Speaker Mike Johnson, R-La. “There might be some initial challenges. However, I believe this will prove beneficial for Americans and assist everyone across the country.
Long-standing trade allies are getting ready with retaliatory measures. Canada has already implemented certain actions against the 25% tariffs that Trump linked to fentanyl smuggling. In reaction to the steel and aluminum duties, the European Union levied taxes on $28 billion worth of American products, encompassing bourbon among others. This led Trump to consider imposing a 200% tariff on alcoholic beverages from Europe.
Numerous partners believe they were involuntarily pulled into a dispute by Trump, who often claims that both allies and adversaries have exploited the U.S. through various tariffs and trade restrictions.
International car manufacturers argue that Trump’s tariffs will adversely affect both them and American consumers.
On the contrary, Americans can afford to opt for designer dresses from French couturiers and vehicles manufactured by German companies due to their higher income levels. However, according to World Bank statistics, the European Union reports lower average incomes per person compared to those in the United States.
We did not initiate this conflict,” stated European Commission President Ursula von der Leyen. “While retaliation may not be our preferred course of action, we are prepared with a robust strategy should it become essential, and we would implement it accordingly.
Since Trump has promoted his tariff policies without offering detailed information, he has created a heightened level of ambiguity globally. This suggests that the economic downturn might not be confined to the United States but could potentially spread to other countries where people may attribute responsibility to him alone.
Ray Sparnaay, who leads JE Fixture & Tool, a Canadian tool and die firm located just across from Detroit over the river, mentioned that this unpredictability has paralyzed their capacity to plan effectively for the future.
He stated on Monday, ‘Tariffs are set to be introduced, but their implementation remains uncertain.’ He added, ‘Probably the most significant issue we have faced since November is this lack of clarity. This ambiguity has largely halted our quotation procedures and delayed business opportunities we were anticipating securing.’
