Today is "Liberation Day" Trump tweaks 20 percent tariff hammer - first concrete ideas are now becoming known
US President Trump wants to further tighten his already drastic tariff policy. He sees the USA as a victim of unfair trade practices. It is a risky game with the global economy.
02.04.2025, 04:44
02.04.2025, 11:11
dpa
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- US President Donald Trump plans to announce the details of his far-reaching punitive tariffs today.
- They could also hit the European Union hard and shake the global economy.
- Even though many details about the new tariffs are still unclear, they could take effect immediately.
- The Washington Post reports, citing unnamed sources, that White House staff have drawn up a proposal to introduce tariffs of around 20 percent on most imports into the United States.
US President Donald Trump wants to announce the details of his announced far-reaching punitive tariffs today. They could also hit the European Union hard and shake the global economy. Even though many details about the new tariffs are still unclear, they could take effect immediately. "They will take effect immediately," said Trump's spokeswoman Karoline Leavitt. The rules, which Trump intends to announce during a speech in the Rose Garden of the White House (22:00 German time), are likely to be the US President's most aggressive and far-reaching tariff measures to date.
Blanket or reciprocal tariffs?
The Republican has touted the day of the announcement in advance as a "day of liberation". There was talk of imposing reciprocal tariffs. In principle, this means that the USA will raise its tariffs to a corresponding level wherever it currently charges less than its trading partners.
However, it was recently unclear whether the White House would explicitly focus on individual sectors and countries and respond with precisely tailored punitive measures. The USA could also impose blanket tariffs instead.
The Washington Post, citing unnamed sources, reported that White House staff had drafted a proposal to impose tariffs of around 20 percent on most imports into the United States. This step would probably have a significant negative impact on the global economy. According to the newspaper, however, White House advisors pointed out that several options were on the table and that no final decision had yet been made.
Europe in his sights
Although Trump said at the weekend that the tariffs would affect "all" countries, the EU in particular is a thorn in the 78-year-old's side. He complains that European companies sell significantly more goods in the USA than American companies in the EU. The Republican also accuses the Europeans of unfair distortions of competition such as subsidies and strict import regulations. He also repeatedly criticizes the value added tax that is due in Europe, but which does not represent a trade barrier. It is levied regardless of whether goods are produced domestically or imported from abroad.
According to EU Commission President Ursula von der Leyen, the USA will impose new special tariffs on imports of semiconductors, pharmaceuticals and wood. A further announcement on reciprocal tariffs is also expected in response to allegedly unfair tariffs imposed by other countries, said the German politician. These would apply immediately to almost all goods and many countries around the world and would be in addition to the special tariffs that US President Donald Trump has already put in place.
The EU has already made it clear that it will respond to Trump's tariffs with countermeasures - this could trigger a trade war. Higher tariffs make international trade more expensive, create uncertainty on the markets, increase consumer prices and slow down growth. The risk of a global recession is growing. Production relocations can lead to supply chain problems, and export-dependent industries are at risk of losing orders, which in turn can lead to redundancies.
Trump pursues a tough tariff policy
Despite all these dangers, Trump has been backing tariffs since his return to the White House. He has already imposed tariffs on all aluminum and steel imports, imposed tariffs of 25 percent on imported cars and car parts, introduced increased tariffs on all goods from China and targeted his neighbors Canada and Mexico. Although he suspended some of the tariffs imposed on goods from Canada and Mexico, this period is now coming to an end. It is unclear whether this will happen on Wednesday or Thursday.
Trump has described tariffs as his favorite word in the past and introduced various punitive levies during his first term in office. He wants to use tariffs to correct the trade imbalance and strengthen the USA as a production location. At the same time, the revenue from tariffs could be used to at least partially finance his expensive election promise of comprehensive tax cuts. Tariffs also serve as leverage for the Republican to achieve his goals in negotiations with other countries.
Trump: "It affects the world"
An import tariff is a levy that a state imposes on imported goods. It makes imported products more expensive and is intended to protect domestic companies from foreign competition. The importing company pays the levy - in the case of US tariffs, the company in the USA. Economists fear that companies will pass on the higher prices to consumers. This could fuel inflation in the US and slow down growth.
Trump and his team brush these concerns aside. The tariffs mean "more jobs in your communities, which means more money, more investment and more money in your pocket," Trump's spokeswoman Leavitt told Americans. "It affects the world, not just this country," Trump said earlier this week. The right thing is being done for the USA, which is the piggy bank for the whole world.