President Trump is set to reveal an extensive plan for “reciprocal” tariffs, slated to be announced in detail during a Rose Garden ceremony on Wednesday. Karoline Leavitt, the White House press secretary, confirmed this schedule to reporters on Tuesday. She mentioned that Trump has been diligently working with his trade team to refine a strategy aimed at correcting “decades of unfair trade practices.”
When questioned about the potential risks involved, Ms. Leavitt confidently stated, “They’re not going to be wrong,” and assured everyone, “It is going to work.”
The administration has been deliberating over various tariff strategies recently. One simple yet bold approach under consideration is a flat 20 percent tariff on all imports, which advisors suggest could bring in over $6 trillion for the U.S. government.
However, there’s also talk about applying different tariff levels based on the trade barriers certain countries impose on American products. Notably, some nations might bypass tariffs altogether by signing new trade agreements with the U.S.
During a conversation with reporters in the Oval Office on Monday, President Trump mentioned the U.S. will take a “very nice, relatively speaking” stance on tariffs for numerous countries, including allies, which he believes unfairly restrict American exports.
“The word reciprocal is very important,” Trump emphasized. “What they do to us, we do to them.”
On Tuesday, Ms. Leavitt noted that the president had made up his mind and was meticulously refining the plan with his team. When asked if companies have options to avoid the tariffs, she mentioned the president is open to discussions but remains determined to “fix the wrongs of the past.”
Leavitt added that many foreign governments have reached out to discuss the tariffs, but President Trump is concentrating on the interests of the United States.
“The president has an exceptional team of advisors with decades of expertise in these issues, and our aim is to restore America’s golden age, transforming it into a leading manufacturing powerhouse,” she expressed.
The anticipation of these tariffs has caused some unease in the markets. Stocks dipped slightly at the market’s opening, with the S&P 500 dropping about 0.4 percent but then recovering after a turbulent Monday, marking its worst month and quarter since 2022.
Investors remain anxious to understand the full extent of Trump’s reciprocal tariffs, as the prospect of a global trade war contributes to recent market volatility.
The uncertainty is also affecting the manufacturing sector, which, according to Tuesday’s data from the Institute for Supply Management—a key index monitored by the White House—is showing signs of contraction this March. The report noted declines in employment and new orders as companies voice concerns over Trump’s tariffs and the potential for costly global retaliation.
The president will receive several reports from his advisers on about two dozen trade-related matters on Tuesday. These reports will guide him on addressing various issues.
Reports from the Commerce and Treasury Departments, along with the Office of the U.S. Trade Representative, are expected to cover reasons behind persistent trade deficits, unfair trade practices by other nations, loopholes in current trade agreements, and strategies to achieve balanced trade relations, among other topics.
The trade representative, for instance, is identifying countries suitable for new trade agreements and assessing whether China has adhered to its commitments under a 2020 trade deal signed by Trump during his first term.
In several instances, President Trump has made decisions ahead of reporting. He has already imposed 25 percent tariffs on steel and aluminum imports after raising questions about foreign metals threatening national security. Tariffs have also been levied on Canada, Mexico, and China, targeting issues like the flow of fentanyl and migrants into the U.S., which are other areas under review by his administration.
How President Trump will proceed on Wednesday is still a bit unresolved, leaving global trading partners uncertain on their responses.
The European Union has already declared plans to counter Trump’s steel and aluminum tariffs. However, European officials are still deciding on the best response to the tariffs Trump will announce on Wednesday.
Thus far, Europe’s response has focused on implementing higher tariffs on a wide range of goods—whiskey, motorcycles, and women’s clothing are some items under consideration. Officials are also contemplating trade barriers on services, utilizing a new trade approach developed in 2021.
This new tool is reportedly aimed at large tech companies, according to confidential diplomats, potentially impacting firms like Google, Meta, and even American financial institutions. By leveraging the European market, which consumes more services from the U.S. than it exports, the EU hopes to wield significant influence. Yet, no firm decisions have been made.
“Europe holds a lot of cards,” Ursula von der Leyen, the president of the European Commission, remarked during a speech on Tuesday. “From trade to technology to the size of our market.”
Officials stressed that while their aim is negotiation, they are prepared to respond if necessary.
“All instruments are on the table,” Ms. von der Leyen affirmed.
Danielle Kaye contributed reporting.
