President Trump is preparing to announce a new set of wide-ranging tariffs, which he has dubbed “Liberation Day.” The announcement is set to take place at the White House, but there is still uncertainty about the potential height of these tariffs and the specific countries that will be targeted. US retailers and European industry leaders are expressing apprehension about the impending announcement. Analysts caution that such measures could push global prices upward.
The White House has indicated that Trump has been negotiating at the last minute with several countries. The UK is preparing for potential fallout from the tariffs. In a House of Commons session, Foreign Secretary David Lammy said that the UK is preparing for the worst, although intense conversations with Washington are still ongoing.
The European Union has threatened swift retaliatory measures if Trump’s new tariffs include European goods. The EU plans to initially target US goods and potentially expand its measures to US services, affecting big tech companies, banks, and other financial service providers. China, Japan, and South Korea have agreed to strengthen regional free trade, while India has already reduced tariffs on some goods.
Canada’s new Prime Minister, Mark Carney, emphasized that any response would not disadvantage Canadian producers.
New tariffs spark global reactions
Israel stated it is prepared to take steps to mitigate the impact of any new US tariffs.
Union leaders in the United States, such as Shawn Fain from the United Auto Workers, view tariffs on car imports as beneficial to American workers. The 25% tariff on all cars imported to the US, effective from April 2, is seen by the union as a way to revive domestic manufacturing jobs that have been outsourced over the years. American consumers like Amber Walliser are tightening their budgets amid these changes.
Walliser’s family is holding off on major purchases and even delaying plans to expand their family due to economic uncertainties. European industries, particularly in Germany and France, are concerned about the financial impact of the tariffs. Germany’s car makers and France’s wine and champagne industries, which rely heavily on the US market, will likely be significantly affected.
EU officials are preparing a robust response to protect European businesses. As President Trump prepares to announce new tariffs, global reactions span the spectrum from preparation to retaliation. The US and its trading partners are bracing for a complex and potentially turbulent economic landscape with significant implications for international trade relations.
