Liberation Day: The tariffs we could expect on April 2

WASHINGTON - President Donald Trump is planning "Liberation Day" on April 2 – the day he rolls out a new set of tariffs that he believes will boost the American economy by freeing it of foreign-made goods. 

April 2 is at least the third "liberation day" that he has identified. At a rally last year in Nevada, he said the day of the presidential election, Nov. 5, would be "Liberation Day in America." He later gave his inauguration the same label, declaring in his address: "For American citizens, Jan. 20, 2025, is Liberation Day."

His repeated designation of the term is a sign of just how much importance Trump places on tariffs, an obsession of his since the 1980s. 

What tariffs will Trump announce on ‘Liberation Day’?

What we know:

The details of Trump's next round of import taxes are still unclear. He wants to announce import taxes, including "reciprocal" tariffs that would match the rates charged by other countries and account for other subsidies. Trump has talked about taxing the European Union, South Korea, Brazil and India, among other countries.

• The Republican president plans to tax imported pharmaceutical drugs, copper and lumber. 
• He has put forth a 25% tariff on any country that imports oil from Venezuela, even though the United States also does so. 
• Imports from China are being charged an additional 20% tax because of the country's role in fentanyl production. 
• Trump has imposed separate tariffs on goods from Canada and Mexico for the stated reason of stopping drug smuggling and illegal immigration. 
• Trump also expanded his 2018 steel and aluminum tariffs to 25% on all imports.

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As he announced 25% auto tariffs last week, he alleged that America has been ripped off because it imports more goods than it exports.

What they're saying:

"This is the beginning of Liberation Day in America," Trump said. "We’re going to charge countries for doing business in our country and taking our jobs, taking our wealth, taking a lot of things that they’ve been taking over the years. They’ve taken so much out of our country, friend and foe. And, frankly, friend has been oftentimes much worse than foe."

In an interview Saturday with NBC News, Trump said it did not bother him if tariffs caused vehicle prices to rise because autos with more U.S. content could possibly be more competitively priced.

RELATED: Trump imposes 25% tariff on imported cars: 'This is permanent'

"I hope they raise their prices, because if they do, people are gonna buy American-made cars," Trump said. "I couldn’t care less because if the prices on foreign cars go up, they’re going to buy American cars."

Why is Trump imposing tariffs? 

Dig deeper:

Some aides suggest the tariffs are tools for negotiation on trade and border security; others say the revenues will help reduce the federal budget deficit. Commerce Secretary Howard Lutnick says they will force other nations to show Trump "respect."

What's next:

Trump has also suggested that he will be flexible with his tariffs, saying they could be short-lived if he can cut a deal after imposing them.

"I’m certainly open to it, if we can do something," Trump told reporters. "We’ll get something for it."

What will tariffs do to the economy? 

Why you should care:

Trump sees his tariffs as providing national redemption, but the slumping consumer confidence and stock market indicate that much of the public believes the U.S. economy will pay the price for his ambitions.

Economists say the tariffs would get passed along to consumers in the form of higher prices for autos, groceries, housing and other goods. Corporate profits could be lower and growth more sluggish. Trump maintains that more companies would open factories to avoid the taxes, though that process could take three years or more.

RELATED: Inflation remained elevated in February, data shows

Economist Art Laffer estimates the tariffs on autos, if fully implemented, could increase per vehicle costs by $4,711, though he said he views Trump as a smart and savvy negotiator. The investment bank Goldman Sachs estimates the economy will grow this quarter at an annual rate of just 0.6%, down from a rate of 2.4% at the end of last year.

Mayor Andrew Ginther of Columbus, Ohio, said on Friday that tariffs could increase the median cost of a home by $21,000, making affordability more of an obstacle because building materials would cost more.

What are other countries planning in response to Trump’s tariffs?

Treasury Secretary Scott Bessent has suggested that tariffs would be a one-time price adjustment, rather than the start of an inflationary spiral. But Bessent's conclusion rests on tariffs being brief or contained, rather than leading other countries to retaliate with their own tariffs or seeping into other sectors of the economy.

The other side:

Most foreign leaders see the tariffs as destructive for the global economy, even if they are prepared to impose their own countermeasures.

Canadian Prime Minister Mark Carney said Trump's tariff threats had ended the partnership between his country and the United States, even as the president on Friday talked about his phone call with Carney in relatively positive terms. Canada already has announced retaliatory tariffs.

RELATED: EU postpones US trade tariffs after Trump warns of 200% tax on European wine

French President Emmanuel Macron said the tariffs were "not coherent" and would mean "breaking value chains, creating inflation in the short term and destroying jobs. It’s not good for the American economy, nor for the European, Canadian or Mexican economies." Yet Macron said his nation would defend itself with the goal of dismantling the tariffs.

The Chinese government said Trump's tariffs would harm the global trading system and would not fix the economic challenges identified by Trump.

"There are no winners in trade wars or tariff wars, and no country’s development and prosperity are achieved through imposing tariffs," Foreign Ministry spokesperson Guo Jiakun said.

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