President Donald Trump’s sweeping new tariff plan, dubbed “Liberation Day” tariffs, is set to take immediate effect, the White House announced Tuesday. The move marks one of the most aggressive trade policies in modern U.S. history, stirring concerns among economists, investors, and businesses alike.
Trump is scheduled to unveil the details of the new tariffs at a Rose Garden ceremony on Wednesday at 4 p.m. ET. White House Press Secretary Karoline Leavitt confirmed in a briefing that the tariffs would be enforced “immediately” following the announcement.
While specifics remain unclear, reports suggest Trump is considering a universal tariff potentially as high as 20% on all imports. This would be a significant escalation from his first-term policies, which targeted specific sectors like steel and aluminum.
Economic Concerns and Market Reactions
Economic experts warn that such a move could have severe repercussions. A Moody’s Analytics simulation predicts that a 20% universal tariff could result in the loss of 5.5 million jobs, drive unemployment to 7%, and shrink U.S. GDP by 1.7%.
“If that happens, we get a serious recession. It’s a wipeout for the economy,” said Mark Zandi, chief economist at Moody’s Analytics. Wall Street has reacted sharply, with stocks tumbling ahead of the announcement as uncertainty looms over the economic impact.
Trump’s latest tariff strategy is set to impact up to $3.3 trillion worth of imports, a move reminiscent of the protectionist policies of President William McKinley in the 1890s.
During his first term, Trump imposed tariffs on $380 billion worth of imports. This time, his administration has already implemented tariffs on over $1 trillion in imports since January, with further hikes expected if Canada and Mexico’s exemptions are lifted.
Business Leaders Express Frustration
U.S. manufacturers and business leaders have voiced their concerns over the instability caused by Trump’s tariff policies.
“Tariffs! We need to make decisions, but the ball is constantly moving. This is truly ridiculous,” a manufacturing executive told the Federal Reserve Bank of Dallas in a recent survey.
White House Defends the Policy
Despite mounting criticism, the White House remains firm on its stance. “The president will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decades,” Leavitt stated, adding that the plan is aimed at securing jobs for future generations.
However, economic analysts argue that the potential benefits may not outweigh the risks. Goldman Sachs recently raised its recession probability from 20% to 35% in response to Trump’s tariff strategy.
With tariffs set to take effect immediately, businesses, investors, and consumers are bracing for the economic impact. Whether Trump’s bold trade policy will lead to a manufacturing boom or a financial downturn remains to be seen. For now, all eyes are on the White House as the U.S. embarks on an unprecedented economic path.
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