President Donald Trump is set to drop a bombshell on the world today, Wednesday, April 2, 2025, announcing what he’s calling “Liberation Day”—a massive wave of new tariffs aimed at shaking up global trade. The White House is gearing up for a Rose Garden ceremony where Trump will unveil these sweeping duties, hitting everything from cars to steel and promising to match tariffs other countries slap on U.S. goods. It’s a bold move that’s already rattling markets, sparking threats of retaliation, and raising fears of a full-blown trade war—just 72 days into his second term.
Trump’s been teasing this for weeks, and now it’s here. The plan, still hush-hush on exact numbers until the big reveal, includes a 25% global tariff on auto imports starting tomorrow and immediate duties on a slew of other goods. He’s already rolled out 20% tariffs on all Chinese imports since March 4—up from 10% in February—plus 25% on steel and aluminum worldwide since March 12, no exemptions this time. Today’s announcement piles on “reciprocal tariffs,” a pet idea of Trump’s to mirror what countries like India or the EU charge U.S. exports, way more than America’s usual 2.5% or 5%. “Tariffs are the most beautiful word,” Trump’s said before, and he’s doubling down—calling it a fix for a $1 trillion U.S. trade deficit in 2023.
The numbers are huge. These tariffs could hit over $1.4 trillion in imports by month’s end, up from $380 billion in his first term. Canada and Mexico, spared some relief until today after a 30-day pause expired, face 25% on non-USMCA goods—think dairy or steel not meeting trade deal rules. China’s getting an extra 10% on top of existing rates, stacking to 45% on some stuff like electronics. A wild card? Trump’s floating a 25% tariff on any country buying Venezuelan oil—like China, which took 68% of it in 2023—starting today. It’s all tied to his “America First” push—stopping drugs like fentanyl, boosting U.S. factories, and flexing muscle on the world stage.
Markets are freaking out. U.S. stocks tanked Wednesday morning, with the S&P 500 down again, extending a $5 trillion value wipeout since February. Gold hit a record high as investors ran for cover. “This is economic self-harm,” warned Kristalina Georgieva of the IMF, predicting slower growth and higher prices. Tax Foundation estimates Trump’s tariffs so far—before today—could shrink U.S. GDP by 0.4% and kill 358,000 jobs if retaliation kicks in. Consumers? They’re looking at thousands more a year for cars, groceries, and gas.
The world’s hitting back fast. Canada’s Justin Trudeau, set to hand off to Mark Carney soon, slammed it as “very dumb,” rolling out $20 billion in retaliatory tariffs on U.S. steel, computers, and sports gear. Ontario Premier Doug Ford paused 25% electricity export tariffs after talks with Commerce Secretary Howard Lutnick but warned of blackouts if Trump pushes harder. Mexico’s President Claudia Sheinbaum held off on her own countermeasures—promised for Sunday—but said, “We’ll respond.” China’s foreign ministry fired off: “If it’s war the U.S. wants—tariff, trade, or any kind—we’ll fight to the end.” They’ve already got 15% duties on U.S. pork and soybeans from March 4 and now hint at rare mineral bans.
Businesses are scrambling. Walmart’s been begging Chinese suppliers to eat tariff costs, landing them in hot water with Beijing, who summoned execs March 12. U.S. steel makers like Alcoa cheer the metal tariffs—production popped after 2018’s version—but downstream car and tool companies lost $3 billion in 2021 from higher costs. “I can’t plan like this,” a Detroit auto supplier said, echoing a chorus of CEOs blindsided by Trump’s on-off threats—like the Canada auto exemption he flipped and then axed today.
Trump’s team says it’s about power. Trade adviser Peter Navarro, now Senior Counselor, wrote that auto tariffs will “restore” U.S. manufacturing, not just protect it. Lutnick hinted at “some movement” with Canada and Mexico—maybe tweaking rates if they play ball on fentanyl—but no full rollback. Trump’s framing it as a drug and border crackdown too—25% tariffs on Canada and Mexico since February were tied to immigration and fentanyl, though a month-long break ended today. “Other countries have used tariffs against us forever—now it’s our turn,” he said.
Critics aren’t buying it. “This upends decades of rules,” said Dartmouth’s Douglas Irwin—think WTO norms where tariffs stay low unless everyone agrees. The EU’s prepping $28 billion in counter-tariffs on U.S. farm and industrial goods, set for mid-April. Brazil’s holding off but fuming over steel—third-biggest exporter to the U.S.—while India’s eyeing a manufacturing grab from China. “It’s tit-for-tat chaos,” said American University’s Kara Reynolds, warning U.S. farmers and factory workers could lose big if exports tank.
Trump’s calling it “Liberation Day,” but for many—farmers, shoppers, allies—it feels more like a reckoning. Stocks wobble, tempers flare, and the world waits to see how far this trade war goes.