'Liberation Day': Trump to announce tariff plans in Rose Garden spectacle

President Donald Trump is set to announce his decision on the implementation of an array of new tariffs Wednesday as some of the tariffs he has already announced will take effect. Trump has dubbed Wednesday “Liberation Day” and is planning an event at the White House’s Rose Garden to unveil his decision on broader tariffs.

Trump announced tariffs on Mexico and Canada earlier in his administration, but agreed to postpone both following negotiations with the leaders of those countries that led to agreements to bolster border security. Each tariff adds 25% on goods from the respective country. While those tariffs were part of border security negotiations, Trump is expected to unveil broader tariffs to achieve his stated goal of rebalancing American global trade.

On Tuesday, he received reports from the Treasury, Commerce Department, and Office of the Trade Representative on possible tariffs and their potential impacts, though he reportedly has already made up his mind on what to implement. “I’ve settled, yeah,” he told the The Wall Street Journal on Monday.

Praise from union leadership and rank-and-file

Ahead of the Rose Garden event, moreover, he unveiled a 25% tariff on auto imports that earned praise from union workers, including from United Auto Workers (UAW) leaders who opposed his candidacy. Trump notably feuded with UAW President Shawn Fain during the election, but Fain had high praise for the commander-in-chief after the auto tariffs.

"We applaud the Trump administration for stepping up to end the free trade disaster that has devastated working-class communities for decades," Fain said. "Ending the race to the bottom in the auto industry starts with fixing our broken trade deals, and the Trump administration has made history with today's actions."

Trump’s “Liberation Day” tariffs are expected to go much broader, though the details remain unclear as of press time and interested parties are expected to push for limited exemptions all the way to the deadline.

The point of conjecture at present is whether Trump will announce an across-the-board 20% tariff on all foreign imports, with few if any exceptions, or whether he will opt for a more targeted, reciprocal tariff policy of matching each nation’s respective rates and negotiating on an individual basis.

Policies and pledges

During the press briefing on Tuesday, White House press secretary Karoline Leavitt declined to offer a preview of Trump’s exact decision, but spoke to broader tariff policy and the pledged foreign investments that the administration has already secured.

“It's simple. If you make your product in America, you will pay no tariffs. We have already seen a number of the largest companies in the world respond to this economic approach,” she said. “For example, Project Stargate, led by Japan-based Softbank and US-based OpenAI and Oracle, announced a $500 billion private investment in the United State-based artificial intelligence infrastructure.”

“Apple announced a $500 billion investment in U.S. manufacturing and training. Nvidia announced it will invest hundreds of billions of dollars over the next four years in U.S.-based manufacturing, and the Taiwan Semiconductor Manufacturing Company (TSMC) announced a $100 billion investment in U.S.-based chips and manufacturing,” she added. “These are just a few of the investment announcements that have already been made, and it is clear that President Trump's America First approach is already working.”

In anticipation of Trump’s announcement, Israeli Finance Minister Bezalel Smotrich signed an order to remove all remaining import tariffs on American goods, subject to the approval of the Knesset Finance Committee, according to the Times of Israel.

Trump himself has indicated he expects other nations to drop their tariffs on American goods in response to his moves and has stated that India would soon drop many of its tariffs. “I heard that India is going to be dropping its tariffs substantially. A lot of countries are going to drop their tariffs,” he told reporters on Monday.

Opposition in Congress

Trump’s support for tariffs during the 2016 campaign was a substantial challenge to long-established Republican free-trade orthodoxy and his second term already threatens to rewrite the party dogma on global commerce altogether. Some lawmakers, however, are less than thrilled by the prospect, and an unusual coalition of moderate Republicans and conservative libertarians have joined forces to express their disagreements.

Sen. Tim Kaine, D-Va., has led a resolution to end the emergency declaration that prompted Trump’s tariffs on Canada. So far, three Republicans have aligned with Democrats to back the measure, including Sens. Thom Tillis, N.C.; Rand Paul, Ky.; and Susan Collins, Maine, Politico reported. At least one more Republican would need to sign on to pass the measure, which would still likely fail in the House. Nonetheless, the vote will prove a metric for internal support for tariffs on the Republican side.

Some Republicans are enthusiastically on board with the tariffs. Speaking on the “Just the News, No Noise” television show on Tuesday, Rep. Riley Moore, R-W.V., pointed to how free trade practices had led to job losses in his own district. ”The American workers have been living in a trade war for over 40 years, and they've seen their jobs be decimated, like in my state of West Virginia, where just last year, because the Biden administration would not implement tariffs on 10-plate steel that was being dumped into the market by China and Canada and some other countries, we lost 1,000 jobs in my district alone, and we had to idle that steel plant,” he said.

“That's not putting the American worker first. It’s not putting America first,” he added. “So, President Trump is the first person in my lifetime who is really trying to reset this table and put us in a good position to be able to succeed here as a country,” Moore added.

Continued market volatility ahead

Stock markets have reeled in the wake of some of Trump’s tariffs thus far, with key indices such as the DOW Jones Industrial Average, NASDAQ, and S&P 500 plunging significantly in the subsequent days, though they have since stabilized to some degree.

Should Trump opt for broader tariff options, equities are likely to witness a similar drop. Nevertheless, the White House offered its assurances on Tuesday that the markets would ultimately adjust to the changing state of affairs. “Yesterday, Dow futures were up, and there's been a lot of talk about the market, and it was up yesterday,” press secretary Karoline Leavitt told reporters. “So look, the President wants to ensure that all Americans make out well, particularly Main Street, that's the focus of these tariffs."

Leavitt also predicted that "Wall Street will be just fine.”