Trump to Announce Sweeping Reciprocal Tariffs, Sparking Global Trade Tensions

 Washington, April 2, 2025 – U.S. President Donald Trump is set to unveil extensive new reciprocal tariffs on global trading partners on Wednesday, marking a significant departure from decades of rules-based trade practices. The move, expected to drive up costs and trigger widespread retaliation, will be formally announced in a White House Rose Garden ceremony at 4 p.m. Eastern Time (2000 GMT).

White House spokesperson Karoline Leavitt confirmed that the new duties would take effect immediately after Trump’s announcement, with an additional 25% global tariff on auto imports set to be enforced on April 3.

For weeks, Trump has framed his tariff strategy as a measure to level the playing field, addressing what he claims are disproportionately low U.S. tariff rates compared to those imposed by other countries. However, the exact structure of the duties remains unclear amid reports that Trump has considered a universal 20% tariff. A former Trump administration trade official suggested that rather than a blanket rate, the president is more likely to apply individual tariffs at varied levels, targeting a wider group of nations beyond the 15 initially identified by Treasury Secretary Scott Bessent.

Bessent told Republican lawmakers that these reciprocal tariffs would serve as a cap, with the potential for reductions if countries meet the administration’s trade demands. Meanwhile, Ryan Majerus, a former Commerce Department official, noted that while a universal tariff would be simpler to implement, country-specific tariffs would more effectively address unfair trade practices.

Escalating Tariffs and Economic Impact

Since returning to office, Trump has aggressively expanded U.S. trade barriers. In just over ten weeks, he has imposed 20% tariffs on all Chinese imports over fentanyl concerns, reinstated 25% duties on steel and aluminum, and extended tariffs to nearly $150 billion in downstream products. A temporary exemption for most Canadian and Mexican goods from fentanyl-related tariffs is set to expire Wednesday.

According to administration officials, all tariffs—including previously imposed duties—are cumulative. This means that a Mexican-built car, previously subject to a 2.5% import duty, would now face both fentanyl and auto-sector tariffs, bringing the total rate to 52.5%, before any additional reciprocal tariffs.

Global Response and Retaliation

Major U.S. trading partners, including the European Union, Canada, and Mexico, have vowed to retaliate, with some seeking last-minute negotiations with Washington. Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum discussed Canada’s plan to counteract U.S. trade measures, emphasizing the need to safeguard North American competitiveness while respecting national sovereignty.

Meanwhile, American companies report that a growing “Buy Canadian” movement is already restricting access to Canadian markets.

Trump has long contended that American workers and manufacturers have suffered under free trade agreements that have facilitated the rise of a $3 trillion U.S. import market. He argues that the current trade deficit—exceeding $1.2 trillion—necessitates drastic action.

However, economists warn that sweeping tariffs could significantly impact both U.S. and global markets. A 20% tariff hike on top of existing duties would cost the average U.S. household at least $3,400 annually, according to the Yale University Budget Lab.

As Trump moves forward with his tariff agenda, the global economy braces for a new era of heightened trade tensions and economic uncertainty.

Reporting by Andrea Shalal and David Lawder; Additional reporting by Bo Erickson, Nandita Bose, and Trevor Hunnicutt in Washington, and Zoe Law in Toronto; Writing by David Lawder; Editing by Stephen Coates.