Tuesday is Liberation Day, according to President Donald Trump, when he is expected to announce a massive tariff program against every major country, kicking off a global trade war that experts and consumers fear could cost Americans.
“IT’S LIBERATION DAY IN AMERICA!” Trump posted Tuesday morning on the social media site he owns, Truth Social.
After years of a free-trade agreement Trump himself signed in his first term, the president has for months dangled the threat of tariffs against Mexico and Canada as a bludgeon to wrest concessions on stricter border enforcement and crackdowns on fentanyl entering the United States. Currently, there are 25% tariffs on various goods from Canada and Mexico, 10% tariffs on potash from those countries and a 10% tariff on energy from Canada. There is also a 20% tariff on all goods from China.
Canada has retaliated with 25% tariffs on $155 billion of American-made products. China has added a 15% tariff on coal, liquified natural gas, chicken, wheat, corn and cotton, and 10% on crude oil, agricultural machinery, vehicles and some foods. The European Union has also levied a 25% tariff on American agricultural products, tobacco, textiles, steel and aluminum products.
Tariff timeline: Tracking the evolution of Donald Trump’s trade war
Trump has also levied 25% tariffs on all countries on all imports of steel and aluminum, goods from countries importing Venezuelan oil (starting April 2) and car and car parts (starting April 3).
The president has repeatedly said that the world was ripping off the U.S. and the trade deficits — basically, the imbalance between what we buy from other countries and what they buy from us — must stop, that other countries would pay for the tariffs, and that they could avoid them by building their products in America or lowering their own trade barriers.
“LIBERATION DAY IN AMERICA IS COMING, SOON,” Trump wrote on social media last week. “FOR YEARS WE HAVE BEEN RIPPED OFF BY VIRTUALLY EVERY COUNTRY IN THE WORLD, BOTH FRIEND AND FOE. BUT THOSE DAYS ARE OVER — AMERICA FIRST!!!
Experts say that Trump’s back-and-forth negotiations on tariffs and the uncertainty of what he might do next contributed to plunging stock markets and caused consumer confidence to plummet. Supporters say the moves are designed to bring companies and jobs to the United States and force companies to lower their own tariffs or offer the U.S. and Trump something else he considers worthwhile. Critics and many economic experts question the chaotic rollout, belligerent tactics and potential lasting damage to both the domestic economy and diplomatic relations around the world.
Roughly seven in 10 Americans think the country is headed toward a recession, according to a Fox News survey released in late March.
Whatever Trump announces, economics experts say prices in the U.S. are likely to go up.
What are tariffs?
Tariffs are simply taxes imposed on foreign imports, generally a percentage of the price that importers pay. They are often used to encourage domestic production and reduce reliance on foreign goods by driving up the price of imports.
Who pays for tariffs?
Trump has repeatedly and inaccurately stated that the other countries would pay for the tariffs. In fact, economists generally agree that consumers bear the brunt of them as importing companies pass the increased cost in the form of higher prices to maintain their profits or just to keep from losing money on every sale.
Tariffs tend to be regressive, raising prices disproportionately on lower-end versions of goods compared to higher-end counterparts, according to a 2024 study, which means lower- and middle-class families will be hit harder.
Even if tariffs create more demand for domestic manufacturing, those companies are also part of the global supply chain and would also be impacted by tariffs, experts have previously explained to USA TODAY.
Trump has said tariffs could help the U.S. government raise over $1 trillion in the next year or two.
“You’re going to see billions of dollars, even trillions of dollars coming into our country very soon in the form of tariffs,” the president said last week.
However, the nonpartisan Yale Budget Lab found that while Trump’s 25% tariffs on goods from Canada and Mexico could generate roughly $150 billion annually, they will also cost the average household $1,600 to $2,000 every year due to higher prices.
The Center for American Progress estimated Trump’s tariffs could cost American households an average of $5,200 every year.
Why does Trump want to raise tariffs?
Trump and his supporters have offered several reasons for imposing tariffs on other countries, both friend and foe.
When do Trump’s auto tariffs begin?
Trump’s new 25% tariff on imported vehicles and auto parts is set to go into effect on Wednesday, April 2 and begin to be collected on Thursday, April 3.
The tariff affects imported passenger vehicles, including sedans, SUVs, crossovers, minivans and cargo vans; and light trucks. Key automobile parts, like engines, transmissions, powertrain parts and electrical components also fall under the tariff.
Prices are expected to increase “across the board,” according to Ivan Drury, director of insights at automobile research site Edmunds. The effect of the tariffs will touch new and used cars and maintenance costs as well as insurance premiums, since accidents involving new parts would be more costly.
What time is Trump announcing tariffs?
Trump will introduce the tariff expansion at a 4 p.m. White House Rose Garden “Make America Wealthy Again” event on Wednesday.
Contributing: Kinsey Crowley and Jonathan Limehouse, USA TODAY
This article originally appeared on Palm Beach Post: Trump’s latest tariffs start today. What are tariffs? How they work
Reporting by C. A. Bridges, USA TODAY NETWORK – Florida / Palm Beach Post
USA TODAY Network via Reuters Connect
