The White House has confirmed that US President Donald Trump will impose new tariffs today. White House spokeswoman Karoline Leavitt said reciprocal tariffs on countries that impose duties on US goods would take effect immediately after Trump announces them, while a 25% tariff on auto imports will take effect tomorrow.
Earlier, Trump had labelled April 2nd as Liberation Day, insisting that the levies would free the US from its reliance on foreign goods. He said that all countries would be targeted.
He further added it is a bid to boost US manufacturing and punish other countries for what he has said are years of unfair trade practices. White House trade adviser Peter Navarro has stated that the new tariffs would raise 600 billion dollars annually, which would be the largest tax increase since World War II.
Trump will announce the tariffs in the Rose Garden of the White House. Although there has been no information regarding the schedule of the event, US Treasury Secretary Scott Bessent has said that the tariffs will be announced at 4 pm Washington time on April 2, which is 1:30 am IST.
Speaking of impact, US companies that import goods will have to pay the new taxes, especially if the White House starts charging them “right away,” spokesperson Karoline Leavitt had suggested on Tuesday.
According to a BBC report, higher the taxes, more companies will try to find ways to reduce those costs. They might change suppliers, ask business partners to share the costs, or raise prices for Americans. It’s a risky move because if they raise prices too much, customers might stop buying. This situation increases the possibility of a recession in the US and in other countries.
India’s exports to the United States could lose $3.1 billion because of new tariffs that will be announced by President Donald Trump, according to a CareEdge Ratings report. This loss represents about 0.1% of India’s GDP. Smita Rajpurkar, Director at CareEdge Ratings, highlighted potential risks such as reduced exports, weakened investment and consumer confidence, and currency fluctuations.