President Trump has been calling today, April 2, “Liberation Day” since his inauguration Jan. 20.
The day has arrived and the president is planning to make an announcement at 4 p.m.
Most people know the day has something to do with tariffs but are unclear exactly what’s happening or what it means to them.
Here’s a primer on the day, what is known so far and how it could impact you and your household.
What is ‘Liberation Day’?
Trump has repeatedly called April 2 “Liberation Day.” He is expected to enact reciprocal tariffs on major trading partners, especially those that contribute the most to the $1.2 trillion U.S. trade deficit.
Reciprocal tariffs would match those set in those countries on products brought in from the U.S. “Whatever they tax us, we tax them,” Trump said in a speech before Congress March 4.
What is a tariff?
A tariff is a tax, levied by a government, on goods brought into a country — or imported — from another country.
Tariffs increase the cost of those goods for consumers.
➤ Trump’s latest tariffs start today. What are tariffs? How they work
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.
Why would a country issue a tariff?
Tariff’s are issued for a variety of reasons, including:
Will things cost more when tariffs are put in place?
Economists widely agree that tariffs, if applied broadly, result in higher prices for consumers.
Why does Trump want to issue tariffs?
Trump’s motive is to use tariffs as a way to force other countries to lower their own tariffs on U.S. goods and services.
He also wants to create a strong incentive for companies to make consumer products in the U.S. to avoid paying the tax.
What time is Trump’s tariff announcement?
President Trump will make his Liberation Day announcement on tariffs at 4 p.m. EDT from the Rose Garden.
What will Trump announce today, April 2?
Thanks to President Trump, the days of American workers and industries being ripped off are OVER.
America will offer companies the lowest taxes, energy costs, and regulations if they make their products here and hire American workers for the job.
It’s America First ALWAYS… pic.twitter.com/lEKr5rIJkg
White House Press Secretary Karoline Leavitt said March 31 Trump would announce his plans to place reciprocal tariffs on nearly all American trading partners Wednesday, April 2.
“America will offer companies the lowest taxes, energy costs, and regulations if they make their products here and hire American workers for the job,” Leavitt posted on X, formerly known as Twitter.
Details are unclear on exactly what Trump will say this afternoon.
Contributing: C. A. Bridges, USA Today Network, Florida
This article originally appeared on Tallahassee Democrat: Trump to detail tariffs coming on ‘Liberation Day.’ We break it down for you
Reporting by Cheryl McCloud, USA TODAY NETWORK – Florida / Tallahassee Democrat
USA TODAY Network via Reuters Connect
