US President Donald Trump‘s long-promised’ Independence Day ‘ has arrived, with international attention fixed on his latest shift to alter business plans. Trump is set to announce a sweeping set of tariffs on Tuesday at 4 pm Eastern Time ( 2000 GMT / 1.30 am IST on April 3 ) from the White House Rose Garden, reports news agency Reuters.
The taxes, which he claims may decrease US reliance on foreign merchandise, are expected to have significant financial repercussions.
What to expect from Trump’s tax statement
White House press director Karoline Leavitt confirmed on Tuesday that new levies may be imposed on Wednesday, though she provided no details on the amount of the trade restrictions. She did state that “reciprocal tariffs on countries that impose duties on US goods” would take effect immediately after Trump’s announcement, while a 25 % tariff on auto imports would begin on April 3.
Trump has frequently touted April 2 as a time of significant economic transformation, vowing to implement taxes that match those imposed by different states on British goods.
According to the New York Post, the White House is considering a plan to impose an average price of around 20 % on items from nearly every country more than targeting specific regions or business.
Which tariffs will be implemented first?
Trump has already imposed tariffs on aluminium and steel imports, as well as increased duties on Chinese goods. But this time, his administration appears set on implementing additional measures. Treasury secretary Scott Bessent told Republican lawmakers that Trump’s “reciprocal tariffs” would act as a cap, allowing for reductions if other nations comply with US demands.
The first round of new tariffs will include a 25 % levy on auto imports, set to take effect on April 3. Trump has also confirmed that a 25 % tariff will be placed on all imports from any country that buys oil or gas from Venezuela, including the US itself. These new duties are expected to generate significant revenue, with White House trade adviser Peter Navarro estimating they could raise$ 600 billion annually.
How will the tariffs impact consumers?
Economists warn that these broad tariffs could drive up prices for consumers and disrupt supply chains. Businesses have already expressed concern that increased import taxes will raise costs, leading to inflationary pressures. A Federal Reserve Bank of Atlanta survey showed that corporate financial leaders expect tariffs to cut into hiring and economic growth.
Trump’s decision to push forward with these tariffs has sparked backlash from major US trading partners. Canada has vowed to retaliate, with Prime Minister Mark Carney stating,” We will not disadvantage Canadian producers and Canadian workers relative to American workers”. Carney and Mexican President Claudia Sheinbaum also discussed strategies to combat what Canada calls “unjustified trade actions” by US, reports Reuters.
‘ India will drop it’s tariffs substantially’
Trump on Monday asserted that India is set to “drop its tariffs substantially”, along with other US allies, as the deadline for his reciprocal tariffs approaches on April 2. Speaking from the White House Oval Office, Trump highlighted his long-standing grievance that the US has been “ripped off by every country in the world” and reiterated his commitment to what he calls a” Liberation Day” for American trade.
He cited the European Union’s recent tariff reductions as proof that his approach is working and expressed confidence that more nations would follow. ” I heard that India is going to be dropping its tariffs substantially. A lot of countries are going to drop their tariffs”, Trump said.
