In « Liberation Day, » Trump will announce new duties tonight
The White House confirmed on Tuesday that President Donald Trump would impose new duties on Wednesday, but did not provide any details about the size and scope of trade barriers that bother business, consumers and investors in the increasing global trade war.
Trump for weeks has been overwhelming that April 2 will be a « Liberation Day », which will lead to dramatic new duties that could overturn the global commercial system. The announcement in the White House Rose Garden is scheduled for 4:00 pm (23:00 Bulgarian time).
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White House spokesman Carolyn Leevit said that reciprocal duties on countries imposing duties on US goods will come into force as soon as Trump announces them, while a 25% duty on car imports will come into force on the first minute of April 3, but these are the deadlines known by the one.
The Republican President has already imposed a duty on the import of aluminum and steel and has increased duties on all goods from China. But he also repeatedly threatened to impose other duties, just to cancel or postpone them.
Lewitt’s announcement showed that this time he plans to move forward, not to drain. But it happened that the speaker had no idea what the president’s intentions.
« The president has a brilliant team of advisers who have been studying these issues for decades, and we are focused on restoring the golden age of America, » she said at a regular briefing. At the same time, Reuters reported that Trump was meeting the duties group.
His determination to move forward with the restrictive measures comes against the backdrop of increasing indications that widespread uncertainty generated by his continuous focus on tariffs, undermines investors, consumers and businesses in ways that could delay activity and increase prices.
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Atlanta’s Federal Bank economists cited a recent study showing that corporate financial leaders expect the duties to raise their prices this year, while reducing employees and growth.
- The final details of what Trump will reveal on Wednesday remained unclear. According to Washington Post, associates are considering a plan that will increase duties on products by about 20% for almost every country instead of focusing on certain countries or products.
- The administration expects that new duties can raise more than $ 6 trillion revenue that can be sent to Americans as a discount, the newspaper reports. How such an amount can be collected and within what time limit is unknown.
- « Wall Street Journal, » quoting people familiar with discussions, said the US Trade Minister was preparing the option for a comprehensive duty for a subgroup of countries, which would probably not be as high as an option for a universal duty of 20%.
- A White House associate said any article or message before today’s event was « ordinary speculation ».
Trump’s actions have increased tension with the largest trading partners of the United States.
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Canada has promised to answer with their own duties. « We will not disadvantage Canadian producers and Canadian workers against the US, » said Prime Minister Mark Karni in Winnipeg. Carney and Mexico President Claudia Shainbaum spoke on Tuesday about Canada’s plan about « fighting unjustified trade action » by the United States, the Prime Minister’s cabinet said. « With the upcoming difficult times, Prime Minister Carney and President Shainbaum have emphasized the importance of maintaining the competitiveness of North America, while respecting the sovereignty of every strict, » said a statement by Carney’s cabinet. US companies say the « buy Canadian » movement already makes it difficult to reach their products to the shelves of the country.
Other countries have also threatened with countermeasures, although they tried to make deals with the White House to prevent duties.
It was unclear whether these efforts would succeed by Wednesday, but the hope was that they would make Trump retreat in the coming weeks, according to a person familiar with the conversations.
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Trump claims that in recent decades, US workers and producers have been harmed by free trade agreements that have reduced the barriers to world trade and have nourished the growth of the US market for imports worth $ 3 trillion. The explosion of imports came with what Trump sees as an obvious disadvantage: a huge imbalance in trade between the US and the world, with a deficit in trade in goods exceeding $ 1.2 trillion.
- Economists warn that his medicine – high duties – will raise prices at home and abroad and hit the world economy. A duty of 20% in addition to the already imposed would cost the average household in the United States at least $ 3,400according to the budget laboratory of Yale University.
- There are already signs that the US economy is losing inertia due to partly uncertainty, fueled by Trump’s chaotic approach to economic policy.
- Numerous studies on business and households have shown a deterioration in economic perspectives, citing concerns that Trump’s tariffs will lead to the resumption of inflation.
The shocked investors have been selling shares aggressively for more than a month, deleting nearly $ 5 trillion from the value of shares in the United States since mid -February. Wall Street ended mixed on Tuesday with investors stuck in the unknown in anticipation of the details of Trump’s statement on Wednesday.
The risks are not only isolated in the United States.
Enterprises around the world, from Japan through the UK to the United States, reported a decline in activity in March as companies are preparing for the new Trump duties, although some saw a jump in orders because of the race to deliver goods to the US before the new measures hit.
Production activity in the United States contracted after two consecutive months of growth, according to the Institute for Deliveries, and manufacturers of goods have announced that their costs for incorporated materials have been the highest in nearly three years. The duties were widely cited as a major source of anxiety for factories.
« The price increases while business activity is slowing down means that the economy can focus on stagflation, » said Jeffrey Roach, Chief Economist at LPL Financial.
