BY DAVID LAWDER AND ANDREA SHALAL
WASHINGTON- US President Donald Trump was poised to impose sweeping new reciprocal tariffs on global trading partners on Wednesday, upending decades of rules-based trade, threatening cost increases and likely drawing retaliation from all sides.
Details of Trump’s “Liberation Day” tariff plans were still being formulated and closely held ahead of a White House Rose Garden announcement ceremony scheduled later on Wednesday.
The new duties are due to take effect immediately after Trump announces them, White House spokesperson Karoline Leavitt said on Tuesday, while a separate 25 percent global tariff on auto imports will take effect on April 3.
Trump for weeks has said his reciprocal tariff plans are a move to equalize generally lower US tariff rates with those charged by other countries and counteract their non-tariff barriers that disadvantage US exports. But the format of the duties was unclear amid reports that Trump was considering a 20 percent universal tariff.
A former Trump first-term trade official told Reuters that Trump was more likely to impose comprehensive tariff rates on individual countries at somewhat lower levels.
The former official added that the number of countries facing these duties would likely exceed the approximately 15 countries that Treasury Secretary Scott Bessent had previously said the administration was focused on due to their high trade surpluses with the US
Bessent told Republican House of Representatives lawmakers on Tuesday that the reciprocal tariffs represent a “cap” of the highest US tariff level that countries will face and could go down if they meet the administration’s demands, according to Republican Representative Kevin Hern.
Ryan Majerus, a former Commerce Department official, said that a universal tariff would be easier to implement given a constrained timeline and may generate more revenue, but individual reciprocal tariffs would be more tailored to countries’ unfair trade practices.
“Either way, the impacts of today’s announcement will be significant across a wide range of industries,” said Majerus, a partner at the King and Spalding law firm.
In just over 10 weeks since taking office, the Republican president has already imposed new 20 percent duties on all imports from China over fentanyl and fully restored 25 percent duties on steel and aluminum, extending these to nearly $150 billion worth of downstream products. A month-long reprieve for most Canadian and Mexican goods from his 25 percent fentanyl-related tariffs also are due to expire on Wednesday.
Administration officials have said that all of Trump’s tariffs, including prior rates, are stacking, so a Mexican-built car previously charged 2.5 percent to enter the US would be subject to both the fentanyl tariffs and the autos sectoral tariffs, for a 52.5 percent tariff rate — plus any reciprocal tariff Trump may impose on Mexican goods.
