Trump appears at White House ceremony to announce new tariffs
Trump has kept the world guessing about the details of the new tariffs, which are expected to prompt countermeasures from trading partners. He has said he will impose reciprocal tariffs to match US rates with higher levels charged by other countries, but has not said how high those levels would be or which countries would bear the brunt.
Summary:
- Trump to announce new tariffs at White House ceremony
- Auto tariffs to take effect April 3; auto parts on May 3
- New duties to stack on top of Trump's tariffs on cars, metals, Chinese goods
US President Donald Trump appeared at the White House Rose Garden on Wednesday for a "Liberation Day" ceremony where he is expected to announce sweeping tariffs that could escalate a trade war and upend the global economy.
Trump has kept the world guessing about the details of the new tariffs, which are expected to prompt countermeasures from trading partners. He has said he will impose reciprocal tariffs to match US rates with higher levels charged by other countries, but has not said how high those levels would be or which countries would bear the brunt.
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The uncertainty has rattled financial markets and businesses that have relied on trading arrangements that have been in place since 1947.
The new tariffs are due to take effect immediately after Trump announces them, though the administration has not yet published an official notice as it is required to do.
The administration, however, did publish an official notice that a separate set of tariffs on auto imports that Trump announced last week will take effect starting on April 3.
Trump has already imposed 20% duties on all imports from China and 25% duties on steel and aluminum and extended them to nearly $150 billion worth of downstream products.
He has postponed a 25% tariff on most Canadian and Mexican goods to pressure them to crack down on drug trafficking and immigration, though that is due to expire on Wednesday.
Administration officials have said that all of Trump's tariffs stack atop prior rates.
His advisers say the tariffs will return strategically vital manufacturing capabilities to the United States.
Outside economists have warned that tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average U.S. family by thousands of dollars. Businesses have complained that Trump's barrage of threats has made it difficult to plan their operations.
"This is the most ridiculous thing I have ever seen," Doug Ford, premier of the Canadian province of Ontario, said on CNBC.
Across sectors, from cars to ocean freight shipping, luxury goods and beyond, business leaders waited to see what would hit them. Tariff concerns have already slowed manufacturing activity across the globe, while also spurring sales of autos and other imported products as consumers rush to make purchases before prices rise.
Growing uncertainty over the duties is eroding investor, consumer and business confidence. Global stocks retreated on Wednesday, while safe-haven gold held near record highs. U.S. stocks have erased nearly $5 trillion of value since February.
