April 2, 2025 - Liberation Day tariff announcements

Winston Peters at Parliament in Wellington, New Zealand on January 28.

New Zealand’s Foreign Minister Winston Peters said the US imposition of tariffs on New Zealand exports was cause for “celebration,” because other countries have it worse, reported CNN affiliate RNZ.

New Zealand is among a group of nations that will face the baseline 10% tariff, which will come into effect on Saturday.

Trade Minister Todd McClay ruled out imposing reciprocal tariffs on the US earlier on Thursday.

“Tariff rates in themselves push up prices and are not good for trade,” McClay said in a news conference.

But Wellington is disputing the US claim that New Zealand imposed 20% tariffs on US goods, a figure that appeared in a list presented by US President Donald Trump as he announced the tariffs on Thursday. McClay said the figure is closer to 17%, if local sales tax is included. Peters labeled the US calculations a mistake, but said it was “immaterial,” reported RNZ.

ANZ Chief Economist Sharon Zollner told CNN the tariffs alone would not be a game-changer for New Zealand exporters, but there could be indirect impacts.

New Zealand’s key indices, the NZX50, had been trading around 1% down on Thursday.

Beijing will take countermeasures against the US after President Donald Trump announced steep tariffs on Chinese imports, a Commerce Ministry spokesperson said Thursday local time.

Trump unveiled 54% tariffs on all Chinese imports into the United States Wednesday as part of his sweeping “Liberation Day” reset of American trade global policy.

The spokesperson said the tariffs disregard “the balance of interests achieved in multilateral trade negotiations over the years and the fact that the United States has long benefited greatly from international trade.”

The spokesperson repeated China’s view that “there are no winners in a trade war” and said the US move “is a typical unilateral bullying practice.”

“China urges the United States to immediately cancel its unilateral tariff measures and properly resolve differences with its trading partners through equal dialogue,” the spokesperson said.

Han Duck-soo, gives a speech during the opening ceremony of the AI Global Forum in Seoul, South Korea, May 22, 2024.

South Korea’s acting President Han Duck-soo ordered the government to “exert all its capabilities to overcome the trade crisis” at an emergency meeting Thursday local time, describing the situation as “extremely serious.”

US President Donald Trump today announced a 25% reciprocal tariff on imports from South Korea, a longtime US security ally.

Han directed the country’s trade minister to “thoroughly analyze the details and impact of the tariffs announced today and actively engage in negotiations with the US to minimize damages.”

He also instructed the government to swiftly prepare emergency support measures for industries and companies expected to be affected by the tariff announcement.

Trump’s announcement comes after a 25% tariff on steel products was imposed last month. South Korea is the fourth-largest exporter of steel to the US. Its Kospi stock market index was down about 1.5% Thursday after falling 3% at the open.

Some context: Trump’s tariffs could not come at a worse time for South Korea, which is in the middle of a monthslong domestic political crisis.

On Friday, the country’s top court will decide whether to uphold the impeachment of Han’s predecessor Yoon Suk Yeol, who is facing charges of instigating an insurrection after his short-lived martial law order last year, or return him to office.

Treasury Secretary Scott Bessent takes part in an interview with CNN's Kaitlan Collins on Wednesday.

Treasury Secretary Scott Bessent said the most effective tariff policy is akin to a “shrinking ice cube,” acknowledging that tariffs cannot both raise revenue and help restore American manufacturing at the same time.

Bessent argued that tariffs have had multiple uses — to raise revenue, bolster US industry, and secure national interests and priorities.

But when pressed by CNN’s Kaitlan Collins about the possibility that tariff revenue will dwindle over time if steep levies on foreign goods encourage Americans to buy US-made products, Bessent said that may be part of the point.

But he suggested the US would win out either way. “It’s a rebalancing — so we rebalance away from tariffs to more domestic income.”

Some economists worry that President Donald Trump’s latest round of tariffs could push the US economy into recession if they aren’t quickly pulled back.

Zandi said that in many ways, the tariffs announced by Trump are worse than even his worst-case scenario.

“If they follow through, I’d buckle up and brace for impact,” Zandi said.

Zandi added that the tariffs account for nearly 2% of GDP on a static basis (not accounting for the impact of the tariffs on the economy and tax revenue). On that basis, Zandi said that makes the tariffs the largest tax increases since the tax increases during World War II that were used to fund that war.

Kimberly Clausing, nonresident senior fellow at the Peterson Institute for International Economics, described Wednesday’s tariff announcement as “very wrongheaded and much worse than I expected.”

Others are hopeful the US economy will avoid a downturn if trade tensions ease.

“The speed with which tariffs can be removed also bolsters the case for thinking that a slowdown, rather than a recession, lies ahead,” Samuel Tombs, chief US economist at Pantheon Macroeconomics, wrote in a note.

Japan’s benchmark Nikkei 225 index tumbled at least 4% shortly after opening Thursday following US President Donald Trump’s announcement of sweeping global tariffs.

The Nikkei 225 measures the performance of Japan’s top 225 companies traded on the Tokyo Stock Exchange.

Trump announced a 24% reciprocal tax on Japan, one of the dozens of countries singled out for additional tariffs by the US beyond the minimum 10% tariff imposed on all countries.

Some context: Trump had previously announced that the US would impose a 25% tariff on all foreign-made automobiles, a move that took effect on Thursday and is expected to hit Japan particularly hard.

The automotive industry is a pillar of Japan’s economy, and the country is home to companies like Toyota, Honda and Nissan. Japan automobile exports to the US were about $40 billion in 2024. In recent years, major Japanese car manufacturers have moved their production to Mexico to cut costs.

Australian Prime Minister Anthony Albanese condemned US President Donald Trump’s 10% tariffs on the country’s exports as “totally unwarranted.”

The Australian leader said the shared history, friendship and alliance between Australia and the US were “bigger than a poor decision,” but he suggested the move may change Australians’ perceptions of their country’s relationship with the US.

Albanese has ruled out slapping any retaliatory tariffs on the United States, saying it is US consumers who will “pay the biggest price.”

“We will not join a race to the bottom that leads to higher prices and slower growth. We will stand up for Australia. We will continue to make the strongest case for these unjustified tariffs to be removed from our exporters,” he said.

“Our existing free trade agreement with the United States contains dispute resolution mechanisms. We want to resolve this issue without resorting to using this,” he said.

Albanese, who is fighting to keep his position ahead of the May 3 general election, also announced emergency funding support of 50 million Australian dollars ($31 million) for affected industries, including its beef industry, and the strengthening of anti-dumping rules to safeguard products like steel.

Treasury Secretary Scott Bessent downplayed the significance of what will play out in the stock market tomorrow after President Donald Trump signed new tariffs on virtually all US imports.

While the White House itself has acknowledged Americans may face some short-term pain, Bessent said prices could go up but “they don’t have to.”

Also, Bessent emphasized how the 10% baseline tariffs will serve as a “substantial revenue raiser” to support the tax cuts bill, which he said will ultimately lead to lower prices for consumers.

Regarding tariffs on China, Bessent confirmed they will total 54%, adding 34% “reciprocal” tariffs to existing 20% duties on all Chinese imports to the US.

Joshua Bolten, president and chief executive officer of Business Roundtable, listens during a meeting at the White House on April 29, 2020.

The Business Roundtable, a powerful group of America’s leading CEOs, warned tonight that President Donald Trump’s latest tariffs could backfire on the US economy.

Bolten, the former chief of staff to President George W. Bush, said the Business Roundtable supports Trump’s goal of “securing better and fairer trade deals,” including by lowering tariffs on US goods.

Bolten said the CEO group urges the administration and top trading partners to “swiftly” reach trade agreements that will “remove these tariffs.”

“While negotiations are underway, we strongly encourage the administration to implement additional reasonable exemptions and put in place a transparent, predictable exclusion process,” Bolten said.

The Business Roundtable’s members include more than 200 CEOs of leading US companies and its board includes GM CEO Mary Barra, Apple CEO Tim Cook and JPMorgan Chase CEO Jamie Dimon.

The American Petroleum Institute, a trade group representing the oil-and-gas industry, put out a statement hailing Trump’s decision to exclude oil and natural gas from the new round of tariffs.

Oil prices dropped 3% this evening as investors worry the dramatic escalation in the trade war will damage the world economy.

Australian markets dropped on the open Thursday after US President Donald Trump’s decision to impose a 10% tariff on the country’s exports.

The ASX 200 fell 142 points, or 1.79%, led by tech stocks, banks and the property sector.

Andrew McKellar, CEO of the Australian Chamber of Commerce, said compared to some of America’s other significant trading partners, Australia had “escaped relatively lightly.”

But he said Trump’s decision to impose tariffs was not a “friendly act,” and businesses would look to work with the government to push back on them.

A view of the port in San Pedro, Los Angeles, California on Wednesday.

President Donald Trump’s massive new tariffs would send the US tariff rate dramatically higher to levels unseen since around 1910, according to Fitch Ratings.

Trump’s very aggressive tariff moves are set to lift the US tariff rate from just 2.5% last year to 22%, according to Fitch.

That surpasses the roughly 20% tariff rate the United States charged following the infamous Smoot-Hawley Tariff Act of 1930, which set off a global trade war that economists say worsened the Great Depression.

Sonola said “many” nations will likely plunge into recession.

“You can throw most forecasts out the door, if this tariff rate stays on for an extended period of time,” the Fitch economist said.

Sens. Rand Paul, Susan Collins, Mitch McConnell and Lisa Murkowski.

Four Senate Republicans joined with Democrats this evening to deliver a rare bipartisan rebuke to President Donald Trump over trade policy.

The Senate adopted a resolution by a vote of 51 to 48 aimed at blocking the Trump administration’s proposed tariffs on Canadian imports. The four Republicans who voted with Democrats were: Sens. Rand Paul, who cosponsored the resolution, Susan Collins, Mitch McConnell and Lisa Murkowski.

Read more details here about the vote

Senate Minority Leader Chuck Schumer, center, is joined from left by Sen. Tim Kaine, Sen. Peter Welch, and Sen. Angela Alsobrooks, as they speak to reporters about President Donald Trump's tariffs on foreign countries, at the Capitol, in Washington, DC, on Wednesday.

Lawmakers on both sides of the aisle are reacting to President Donald Trump’s announcement of a new, sweeping tariff plan today. Democrats issued warnings about the impact to Americans and some Republicans backed the president, arguing their constituents should too.

Here’s what some Democrats said:

Speaker Mike Johnson looks on, after President Donald Trump delivered remarks on tariffs, in the Rose Garden on Wednesday.

Here’s what some Republicans said:

This post has been updated with additional comments from lawmakers.

Canada's Prime Minister Mark Carney speaks to the media before attending a cabinet meeting regarding US tariffs on Parliament Hill in Ottawa, Canada, on Wednesday.

Canadian Prime Minister Mark Carney said the reciprocal tariffs announced by US President Donald Trump will “fundamentally change the international trading system.”

Canada — like Mexico — was exempt from the reciprocal tariffs announced today but is still subject to a previously announced 25% tariff on goods that are not covered by the USMCA free-trade treaty.

Speaking after Trump’s announcement today, Carney said the US president “has preserved a number of important elements” of the commercial relationship between the two countries, but added that the fentanyl tariffs, tariffs on steel and aluminum, and tariffs on automobiles will remain in place.

Trump has tied tariffs on America’s three largest trading partners — Mexico, China and Canada — to his claims that they aren’t doing enough to prevent undocumented migrants and fentanyl from entering the US.

Carney also pointed to the additional tariffs the US has said it is considering, on pharmaceuticals, lumber and semiconductors.

The House may soon be forced to take a vote rebuking President Donald Trump’s tariff policy, despite GOP leadership efforts to block such a move.

Rep. Greg Meeks of New York, the top Democrat on the House Foreign Affairs Committee, said today that he plans to introduce a privileged resolution to force a vote over tariffs, a procedural maneuver that can be used to bypass leadership and force floor votes.

House GOP leaders have already moved to kill Meeks’ attempts to force a vote on previous Trump’s tariffs — and moved earlier this year to bar the chamber from any floor votes rebuking Trump’s tariff policy. But Democrats say that would not apply to Meeks’ new resolution.

If Meeks introduces it this week, the House could be forced to take a vote in the coming days, though GOP leaders would likely try again to halt that vote. The House is no longer in session this week.

President Donald Trump departs after his remarks on tariffs in the Rose Garden at the White House on Wednesday.

For a president who ran on the promise of lowering prices for consumers on Day One, President Donald Trump’s first major economic initiative is a set of policies practically guaranteed to do the opposite.

The long awaited announcement today was, unsurprisingly, partly a political rally and partly an unveiling of his “Liberation Day” agenda — an across-the-board set of tariffs that represent the most fundamental shift in global trade since World War II.

In a 48-minute speech in the Rose Garden, Trump laid out the key points of his plan before veering into his trademark rambling about the price of eggs, violent gangs crossing the border, his approval ratings, “Sleepy Joe” and other things.

Here are the key points:

Stock futures tumbled in response. Partly because investors know that tariffs raise prices and crimp growth and make it more likely the US will tip into a recession.

The thing concerning critics of tariffs — which is to say, virtually all mainstream economists, business leaders and investors — is the fundamental contradiction in what Trump believes the plan will accomplish.

He sees tariffs as a catch-all economic tool that can restore America’s manufacturing prowess, bring foreign nations to heel on key disputes, restore the balance of trade and bring in gobs of money that can help pay off the US deficit and reduce Americans’ tax burdens, as my colleague David Goldman writes.

And while tariffs can do some of those things, they can’t possibly achieve them at the same time. Consider this: If tariffs are a pressure campaign, they have to go away once countries acquiesce — poof goes the revenue.

There were a lot of flat-out false and exaggerated statements in Trump’s speech. But one thing he said rang true, in a way I’m sure he didn’t intend.

The Distilled Spirits Council of the United States said in a statement today that it urged President Donald Trump to “liberate the US spirits sector disputes by negotiating deals that get us back to fair and reciprocal zero-for-zero tariffs for spirits products.” That means it wants a return to no tariffs on both imports and exports.

The industry had this model with 51 countries and “flourished,” the council said.

The American spirits industry can be a target for retaliatory tariffs. The European Union decided to spike tariffs on American whiskey to 50% in March, which the council at that time called “deeply disappointing.” Canada currently has a 25% retaliatory tariff on all American spirits.

The wine industry: US Wine Trade Alliance said in a statement it “strongly opposes” including wine on the list of products that will be impacted by Trump’s new reciprocal tariffs. It argued that US-European Union wine trade “is already fair and reciprocal, with each side charging the other only pennies per bottle.”

Now, “restaurants will suffer, domestic producers will face new obstacles in bringing their wines to market, and retailers, importers, and distributors across the country will be placed at serious risk,” the alliance said.

This post has been updated with comments from the US Wine Trade Alliance.

Treasury Secretary Scott Bessent takes part in an interview with CNN's Kaitlan Collins.

Treasury Secretary Scott Bessent has a message for any countries who are planning to swiftly react to President Donald Trump’s tariff plans: “Sit back, take a deep breath, don’t immediately retaliate.”

“Let’s see where this goes, because if you retaliate, that’s how we get escalation,” Bessent said in an interview with CNN’s Kaitlan Collins.

“A trade war depends on the country. But remember that the history of trade is we are the deficit country. The deficit country has an advantage. They are the surplus countries. The surplus countries traditionally, always lose any kind of trade escalation,” Bessent said. “As a student of economic history or a professor of economic history, I’d advise against it.”

The European Union, China, Japan, South Korea, Colombia and Mexico have previously said they would respond to Trump’s trade actions. Bernd Lange, chairman of the European Parliament’s International Trade Committee, on Wednesday called America’s new reciprocal tariffs “unjustified, illegal and disproportionate.”

But Bessent cautioned other countries that “doing anything rash would be unwise.”

He also suggested that the tariffs might not be permanent, telling Collins, he believes the Trump administration is going to “wait and see how this plays out.”

China, already subject to a 20% across-the-board tariff on goods it ships to the United States, will now face a 54% tariff.

That’s because President Donald Trump imposed a 34% reciprocal tariff on all Chinese imports that will come on top of the existing 20% tariff that Trump slapped on China to incentivize it to restrict the flow of fentanyl into the United States, White House Press Secretary Karoline Leavitt confirmed today.

That could raise prices substantially for a number of goods Americans buy from China. The United States imported $439 billion worth of goods from China last year, the second top source of imports behind Mexico.

And starting on May 2, the 54% tariff rate will also be applied to packages worth less than $800 coming to the US from China and Hong Kong, goods that were previously excluded from tariffs because of the so-called de minimis exemption. This means Americans who order goods from Chinese-based companies like AliExpress, Temu and Shein could have to pay 54% more.

If goods that cost less than $800 come through standard postal service, they’ll be charged at a rate of 30% or $25, increasing to $50 per package in June.

To skirt existing tariffs, some Chinese companies have shifted production to other Asian countries. But Trump’s new reciprocal tariffs on other Asian nations announced Wednesday will hurt China, too: Vietnam will face tariffs of 46% and Cambodian goods will be tariffed at a rate of 49%.

US stocks plunged in after-hours trading as investors digested President Donald Trump’s sweeping tariffs.

Dow futures fell more than 900 points, or 2.19%. S&P 500 futures sank 3.38%. Futures tied to the Nasdaq 100 dropped 4.28%.

“Trump is enacting a very aggressive tariff policy, far more aggressive than most investors thought possible six months ago,” said Jed Ellerbroek, portfolio manager at Argent Capital. “Painful times for stock market investors.”

Wall Street had been nervous about Trump’s tariffs, though some analysts expected stocks could rally if the tariff announcement was lighter than feared. Those hopes were dashed as Trump unveiled sweeping baseline 10% tariffs on all imports, plus higher rates for specific countries.

“While the market was positioned to bounce on a ‘less bad than expected’ tariff announcement, there is no way to spin today’s news as positive for the economy or stock market,” said Ellerbroek.

JoAnne Bianco, chief investment strategist at BondBloxx, said the US will continue to experience elevated uncertainty and market volatility as investors assess the “detrimental economic impact” of Trump’s tariffs.

Economists expect that Trump’s sweeping tariffs could upend global supply chains, stoke inflation and drag on economic growth. Apple (AAPL) tumbled more than 7% in after-hours trading. The tech giant relies extensively on supply chains in China, which will be subject to steep tariffs.

The other stocks leading markets lower in after-hours trading included Tesla (TSLA), which fell more than 5% and Amazon (AMZN), which fell more than 6%. Nike (NKE) plunged 7% and Walmart (WMT) fell 5%.

“President Trump just finished his tariff speech at the White House and we would characterize this slate of tariffs as ‘worse than the worst case scenario’ the Street was fearing,” said Dan Ives, senior analyst at Wedbush Securities, in a note.

Ives said “the jaw dropper” was Trump slamming hefty reciprocal tariffs on China, bringing its rate to 54%.

“The roller coaster ride continues as the initial leaks were positive … but then the details were released and they were far worse than expected,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.

“The silver lining for investors could be that this is only a starting point for negotiations with other countries and ultimately tariff rates will come down across the board — but for now traders are shooting first and asking questions later,” said Zaccarelli.

President Donald Trump also repeated today his frequent false claim that, before his first presidency, China “never paid 10 cents to any other president” from tariffs.

US President Donald Trump delivers remarks on reciprocal tariffs during an event in the Rose Garden entitled "Make America Wealthy Again" at the White House in Washington, DC, today.

To give himself broad powers to set tariffs, President Donald Trump has declared a national economic emergency, claiming the United States has been mistreated by foreign countries that are happy to sell US consumers goods but put up trade barriers to make American-made goods unattractive and uncompetitive.

America’s trade deficit means that the United States imported $1.2 trillion more goods than it exported in 2024 – a record. However, economists largely agree that the trade gap in goods doesn’t tell the whole story of America’s economic interactions with its trade partners. For example, the US has a surplus in services and last year, America exported $1.1 trillion worth of services, the highest on record.

The trade deficit is offset by exports of capital and financial accounts (US has a surplus), which include foreign asset transactions and international debt forgiveness.

Nevertheless, Trump has attempted to use tariffs to rebuild America’s manufacturing prowess.

Economist Justin Wolfers responded to the president’s tariff announcements Wednesday with a chart showing that the policy will give the United States “the highest tariff rates of any industrialized country. And it’s not even close.”

Comparing various countries’ average tariff rates from 2022, Wolfers says in the chart that “the Trump proposal for 2025 will be literally off the scale of this graph.”

President Donald Trump repeated his frequent false claim that, because of the tariffs he imposed on China during his first term, the US “took in hundreds of billions of dollars” that “they paid.”

President Donald Trump, claiming that “we subsidize a lot of countries,” falsely said today “it’s close to $200 billion a year” with Canada.

President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House on Wednesday.

President Donald Trump today announced tariffs of at least 10% on practically all goods coming into the United States.

He also imposed higher rates on dozens of countries that have the highest trade deficits with the US.

Here are the key things to know from his Rose Garden announcement:

President Donald Trump departs after signing executive orders imposing tariffs on imported goods during a "Make America Wealthy Again" trade announcement event in the Rose Garden at the White House on Wednesday.

President Donald Trump correctly noted in his speech today that Canada has tariffs exceeding 250% on some US dairy products. However, he falsely claimed that merely “the first little carton of milk” exported to Canada faces a “very low price,” but “then it gets up to 275, 300%.”

Trump also didn’t mention something the US dairy industry acknowledges: The US is not hitting its zero-tariff maximum level of exports to Canada in any category of dairy product, so the Canadian tariffs aren’t being applied; with regard to milk in particular, the US isn’t even at half of the tariff-free quota. (There is a vigorous US-Canada debate about why the US is so far from the maximum, with each country blaming the other. Regardless of who’s right, the tariffs aren’t hitting US milk.)

Trump has persistently omitted key facts about Canada’s dairy tariffs. You can read more here from this previous CNN fact check.

President Donald Trump’s newly announced tariffs will lead to higher costs for American families, the National Retail Federation warned today.

The immediate implementation of these tariffs is a “massive undertaking” and could negatively affect millions of US businesses, he noted.

The tariffs are expected to have a disproportionate effect on local communities and, especially, small retailers.

“More tariffs equal more anxiety and uncertainty for American businesses and consumers,” he said. “While leaders in Washington may not care about higher prices, hardworking American families do.”

Consumer spending powers more than two-thirds of the nation’s economic activity; so if that engine falters, the economic consequences can start spiraling.

Consumer confidence has cratered as the sheer unpredictability of Trump’s policies has increased uncertainty. Consumers also have reined in some spending to start the year.

Earlier today, the NRF released its 2025 retail sales forecast, projecting growth of between 2.7% and 3.7% to between $5.42 trillion and $5.48 trillion, marking a likely pullback from the 3.6% annual sales growth notched last year.

“It’s the hard data on employment, income and tariff-induced inflation — not consumer sentiment — that supports our view of a slower trajectory for consumer spending,” Jack Kleinhenz, the NRF’s chief economist said in a statement.

The Senate is expected to start voting around 6:45 p.m. ET on a Democrat-led measure to rebuke President Donald Trump over the tariff policy.

Vote timing in the Senate can be fluid, but that is the current schedule guidance, according to a Senate Republican whip notice.

US stocks tumbled in after-hours trading as President Donald Trump delivered remarks at the Rose Garden and unveiled sweeping tariffs.

Dow futures tumbled 256 points, or 0.61%. S&P 500 futures slid 1.69%. Futures tied to the Nasdaq 100 fell 2.54%.

Stocks had closed higher ahead of Trump’s tariff announcement, but began to slide as Trump revealed his administration’s plan for rolling out tariffs.

Exchange-traded funds that track the major stock indexes also tumbled in after-hours trading. An ETF tracking the Dow fell 1.1%, while an ETF tracking the S&P 500 slid 2.2% and an ETF tracking the Nasdaq 100 slid 3%.

Meanwhile, the most actively traded gold futures contract in New York briefly rose above $3,200 a troy ounce, a record high. Gold is up more than 20% this year and just posted its best quarter since 1986. Gold is considered a safe haven amid economic and political uncertainty.

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden of the White House on Wednesday.

President Donald Trump announced reciprocal tariffs on a list of dozens of countries today.

During his event in the Rose Garden, the president held up charts detailing the percentage the US will tariff each individual country, based on the tariffs charged to the US.

One of the highest tariff rates of 49% will be levied on all Cambodian imports, according to the charts from the White House.

Here’s a look at the reciprocal tariffs:

This post has been updated with additional remarks from Trump.

President Donald Trump delivers remarks on reciprocal tariffs during an event in the Rose Garden entitled "Make America Wealthy Again" at the White House in Washington, DC, on Wednesday.

President Donald Trump claimed that with the latest tariffs, his administration is defending the US farmers and ranchers.

“With today’s actions, we’re also standing up for our great farmers and ranchers who are brutalized by nations all over the world,” Trump said.

The president specifically criticized the tariffs Canada has imposed on US dairy products.

“It’s not fair to our farmers. It’s not fair to our country,” he said, claiming that US provides large subsidies to countries like Canada and Mexico to “keep them in business.”

President Donald Trump said he is taking a stand and “finally putting America first” during remarks leading up to the signing of his reciprocal tariffs plan.

The president claimed the US takes care “of countries all over the world” and then “when you want to cut back a little bit, they get upset you’re not taking care of them any longer.” He said the tariffs are a sign that “we’re going to take care of our people first.”

“We truly can be very wealthy. We can be so much wealthier than any country, it’s not even believable, but we’re getting smart,” Trump said.

A drone view shows containers at the Port of Baltimore, Maryland, on the day U.S. President Donald Trump is set to announce new tariffs.

President Donald Trump today announced tariffs of at least 10% on practically all goods coming into the United States, plus even higher rates on dozens of countries that have the highest trade deficits with the United States.

The new policy represents a dramatic shift in global trade and economic policy. It’s aimed at restoring US manufacturing prowess and the balance of trade. But it threatens to escalate an emerging global trade war and raise prices for American consumers at a precarious time for for the economy.

A group of about 60 or so countries, which senior Trump administration officials labeled the “worst offenders,” will be charged a tariff at half the rate they charge the United States. Those reciprocal tariffs will go into effect April 9 at 12:01 am ET, according to a senior White House official.

Brand new Subaru cars sit in a storage lot at Auto Warehouse Co. on March 24, 2025 in Richmond, California.

President Donald Trump said that the US will impose a 25% tariff on all foreign-made automobiles effective at midnight ET to address “horrendous imbalances” that have impacted the country’s “industrial base” and put national security at risk.

Trump noted how many countries impose high tariffs on US made cars.

Trump added that he doesn’t place the blame on other countries for “this calamity.”

“I blame former presidents and past leaders who weren’t doing their job. They let it happen, and they let it happen to an extent that nobody can even believe. That’s why, effective at midnight, will impose a 25% tariff on all foreign made automobiles,” the president said.

U.S. President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., today.

President Donald Trump said today is “one of the most important days” in American history as he is expected to sign an order instituting reciprocal tariffs on various countries.

“It’s our declaration of economic independence,” Trump said at a Rose Garden event announcing the new measures.

The president said the United States would use the money generated from tariffs to “reduce our taxes and pay down our national debt.”

He also claimed the tariffs would create more manufacturing in the United States which “will mean stronger competition and lower prices for consumers.”

This post has been updated with more remarks from the president.

President Donald Trump is delivering remarks on his “Liberation Day” plans from the White House Rose Garden, where he is expected to announce tariffs on US trading partners.

A number of lawmakers and industry executives are in attendance, according to a person familiar with the planning.

US stocks closed higher Wednesday as traders brushed off concerns about uncertainty and pushed markets into the green.

The Dow closed higher by 235 points, or 0.56%. The broader S&P 500 gained 0.67% and the tech-heavy Nasdaq Composite rose 0.87%. The S&P 500 posted its third day of gains in a row.

Investors will now likely be closely attuned to President Donald Trump’s announcement on tariffs.

“We’re set up for a rally on a ‘less bad’ outcome to Trump’s tariff announcement,” Ellerbroek said. “We’ll see if he gives the market room to put a positive spin on his decision.”

US stock markets closed at 4 p.m. ET, though stock futures trading will continue into the afternoon as investors digest Trump’s announcement on tariffs.

“If the tariffs are not as bad as feared, stocks will rally,” said Jeff Kleintop, chief global investment strategist at Charles Schwab. “If the tariffs are bad, but the market decides they are unlikely to last very long, then stocks could also rally.”

“Of course, if they are much worse than feared and appear chaotic and likely to be followed by more and more in the coming weeks, then the market could sell off,” Kleintop said.

The co-founder of an Ottawa-based brewery told CNN that new tariffs from the White House could rapidly increase the costs of brewing beer and ultimately drive down demand for it.

Josh McJannett, co-founder of Dominion City Brewing Co. said independent brewers on both sides of the border will be spending more “for absolutely no reason.”

Brewers like him have been loading up on can inventory due to US President Donald Trump’s aluminum tariffs – which the Commerce Department on Wednesday specified includes beer cans. But that inventory will not last forever, McJannett said, as his can suppliers are already informing him about price increases.

Like many other local businesses, Dominion City has rolled out their own initiatives to “Buy Canadian,” recently producing a beer with 100% Canadian ingredients.

But there are certain items that they simply can’t buy from local suppliers. Among them are 16-ounce cans, also known as tallboys. Tallboys are a staple in the craft brewery business but aren’t manufactured in Canada at all.

“Because we’re such a small-scale operation — we just can’t pass along anything like a 25% increase to our consumers without seeing a huge impact on consumption,” McJannett said. “People need to eat; they don’t need to drink beer.”

US President Donald Trump signs an Executive Order at the Oval Office of the White House in Washington, DC on February 25.

CNN Business anchor Richard Quest says White House aide Peter Navarro’s claim that tariffs are a tax cut and not an increase is a contradictory statement.

“They are contradictory goals. Let’s be clear about this,” Quest said.

Quest went on to explain:

Quest added, that in the short-run there may be an advantage.

“In the short-run you’re going to see billions of dollars coming into the US Treasury. Fact. take that to the bank as well. But you’re going to have to weigh that against this vast economic experiment, the like of which we’ve not seen before.”

More on tax-cut claim: Navarro said on Sunday that he expects President Donald Trump’s tariffs to bring in $6 trillion in revenue in the next decade, which could amount to the largest tax hike in US history.

Even when adjusting for inflation, that amount would be triple the tax increase put in place in 1942 to pay the cost of fighting World War II.

Navarro, Trump’s senior counselor for trade and manufacturing, insists it’s not a tax increase but a tax cut — echoing the Trump administration’s repeated belief that tariffs will be paid not by American consumers but by businesses in other countries or the countries themselves.

Traders work on the floor of the New York Stock Exchange in New York City today.

It’s been another volatile day on Wall Street, and stocks are fluctuating as President Donald Trump’s expected announcement on tariffs nears.

After gradually climbing midday, US stocks have fallen from their peaks, though were holding onto their gains in afternoon trading.

The Dow was higher by 97 points, or 0.23%. The benchmark S&P 500 index was up 0.26%. The tech-heavy Nasdaq Composite gained 0.4%.

The blue-chip Dow rose nearly 400 points in the early afternoon before flirting with sliding back into the red — but ultimately stalled in the green.

Markets have been choppy in the weeks leading up to Trump’s announcement on tariffs, set for 4 p.m. ET. As investors have wrestled with uncertainty, some think the market might be oversold.

“I just feel like this is one of those moments where the bark may have been worse than the bite,” said Jamie Cox, managing partner at Harris Financial Group. “The [stock] prices have declined to such a degree that the eventual announcement is, you know, less bad than what was anticipated.”

US stock markets will close at 4 p.m. ET, though stock futures trading will continue into the afternoon as investors digest Trump’s announcement on tariffs.

“Investors are obviously very concerned about the risks to the US economy from these [tariff] plans,” said JoAnne Bianco, senior investment strategist at BondBloxx.

“We would just love to see more clarity,” Bianco said.

US President Donald Trump looks on during a cabinet meeting in the Cabinet Room of the White House on March 24 in Washington, DC.

John from Florida wonders: “What does Trump hope to gain by imposing tariffs?”

While the details of President Donald Trump’s tariffs plan are largely unknown, CNN’s David Goldman has some answers in this analysis:

Trump says he believes tariffs are a panacea: a catch-all economic tool that can restore America’s manufacturing prowess, bring foreign nations to heel on key disputes, restore the balance of trade and bring in gobs of money that can help pay off the US deficit and reduce Americans’ tax burdens.

Trump is correct that tariffs can help fulfill many if not all of those promises: When used effectively, tariffs can help boost production at home by making foreign goods more expensive. Because America is an enormous and diverse economy that doesn’t rely on trade as much as its neighbors, the United States could use tariffs to inflict serious damage on other countries’ economies without plunging itself into a recession. Revenue raised by tariffs could help offset some of its deficits.

But, as the saying goes, if it sounds too good to be true, it usually is.

The problem with Trump’s plan is that tariffs can’t achieve all of those goals at the same time.

Read the full analysis.

Have more questions about tariffs? Ask here.

Lumber and logs are stacked at a lumber mill in Elmsdale, Nova Scotia, Canada, on March 25.

A member of Canadian parliament said his country is united its resolve to take care of its workers and push back against the US as President Donald Trump is set to announce more tariffs later today.

Taylor Bachrach, speaking to CNN from Fort St. James, British Columbia, said many people there are “heavily dependent on the softwood lumber industry” and much of that lumber goes to the United States.

“People who are involved in these trade exposed industries are all very concerned about what today’s announcement is going to mean,” he said.

Canada has already threatened retaliation against the US. When it comes to what exactly what that will look like, Bachrach said officials will consider how to make ”an impact with retaliatory tariffs while minimizing the impact on our own economy and on Canadian workers and Canadian jobs.”

He called it a “really critical moment,” adding that Canada has “benefited from so many years as friends and allies and trading partners.”

“This is a very difficult situation and it’s forcing Canadians to have some important conversations about where we go from here with our relationship with the United States,” Bachrach said.

Avocados on a tree are seen at a farm in the municipality of Uruapan, Michoacan state, Mexico, on February 5, 2025.

Some avocado producers in Michoacan, Mexico, have come to a complete stop as they await word on tariffs. Michoacan is the world’s leading avocado-producing region.

“They’re cutting, but very little volume,” said Jorge Mendoza, a salesman at Frutas Finas Sanchez, an avocado producer and distributor. “And they’re adapting to the prices they’re being offered, in this case, lower prices, which would be the main blow to the producer.”

Mendoza said clients in the United States asked to hold any orders this week as a precaution, fearing the product would be shipped and they would face tariffs at the ports of entry.

“There’s a lot of uncertainty; everyone is panicking because some of our clients had already paid tariffs last month. So now, they’ve taken a little more precaution,” Mendoza said. “Very little product is moving in the industry, and we’re all in uncertainty, waiting to see what’s going to happen.”

A person walks by a grocery store on February 12 in Chicago.

President Donald Trump’s most robust move yet to transform the global trading system could end up affecting every American, raising prices at a time when family budgets are already stretched.

The president is implicitly asking everyone to buy in to a strategy that promises tantalizing future benefits but requires sacrifice for years to come.

Trump reasons that by imposing tariffs on imports, he’ll force firms to relocate manufacturing and supply chains to the United States, thereby creating jobs and reviving regions left destitute by globalization.

The downside, however, is that tariffs will spike prices for consumers weary of the high cost of living. And there’s no guarantee firms will bring production back stateside, since such a reorientation would take years and presumably outlast Trump’s time in power.

If the president follows through, he’ll be taking a huge political risk. But he seems oblivious to the potential impact.

Read more here.

House Minority Leader Hakeem Jeffries told reporters that President Donald Trump’s plan to impose sweeping tariffs on America’s trading partners would trigger a recession.

“Trump tariffs are going to make things more costly in the United States,” he said today at a news conference.

Among the many tariff proposals Trump is apparently considering, the worst-case scenario appears to be a 20% universal tax on all US imports.

Research by The Budget Lab, a research center at Yale, found that a 20% across-the-board tariff, along with retaliation by US trading partners, would likely cost the typical middle-class household $3,800 per year in disposable income due to higher prices.

New vehicles are parked on the pier at the Mercedes Benz Vehicle Preparation Center in Baltimore, Maryland, on March 31.

The auto tariffs set to take effect on foreign cars tomorrow could raise the price of some imported cars by up to $20,000, according to new analysis by Michigan think-tank Anderson Economic Group, or AEG.

Cars that are fully imported will see the highest price hikes, anywhere from $8,000-$20,000. That includes brands like Audi, BMW, Jaguar-Land Rover, Mercedes, Genesis, and Lexus. AEG expects cost increases could hit in-demand models within a month.

The imported vehicles highest on the tariff impact list: Full-size SUVs, luxury models, and electric vehicles.

If the Trump administration eventually rolls out tariffs on auto part imports, as it has promised, that will also raise the cost for cars assembled in the US but with parts from Canada, Mexico, and Europe. That’s every car built in the US, as every domestic vehicle contains imported parts.

That includes large SUVs, such as the Chevrolet Suburban, GMC Yukon, Cadillac Escalade, which will cost $10,000-$12,000 more. Mid-sized SUV’s and pickup trucks could see hikes of $5,000-8,500. Some EV’s could see price increases of $15,000.

Even cars assembled in the US but with a low share of foreign parts could see price hikes of at least $2,500.

AEG predicts the tariffs will cost consumers $30 billion in the first year. And while the group expects manufacturers to absorb the tariff cost for the first year, they say eventually it will shift cost entirely to the consumer.

Sweeping new tariffs will be rolled out by the Trump administration today, potentially raising the costs for almost everything Americans buy.

With inflation and high interest rates already contributing to vulnerabilities among consumers, CNN is asking you to tell us how all of this is changing your spending decisions and saving habits.

Cranes used for shipping containers rise from the Port of Newark on September 30, 2024 in New York City.

White House aide Peter Navarro said he expects President Donald Trump’s tariffs to bring in $6 trillion in revenue in the next decade, which could amount to the largest tax hike in US history.

Even when adjusting for inflation, that amount would be triple the tax increase put in place in 1942 to pay the cost of fighting World War II.

Navarro, Trump’s senior counselor for trade and manufacturing, insists it’s not a tax increase but a tax cut — echoing the Trump administration’s repeated belief that tariffs will be paid not by American consumers but by businesses in other countries or the countries themselves.

“The message is that tariffs are tax cuts, tariffs are jobs, tariffs are national security,” Navarro said on Fox News Sunday. “Tariffs are great for America. They will make America great again.”

But most economists say US-imposed tariffs are paid by American businesses and consumers in the form of higher prices on imported goods, not paid by foreigners.

Read more here.

“When other countries enact retaliatory tariffs, don’t the people of that country pay for them? They will not affect the US,” Ted from Connecticut asked us.

Hi Ted, great question!

If other countries impose retaliatory tariffs on the United States, you’re correct in that people in those countries (i.e. the importers) would pay them.

That’s because the prices of imported goods being tariffed will rise unless that country can produce more of that particular item domestically or import it from another country.

But expanding an industry can be a lengthy process, and not all items can be made or grown in every country. And even if they can, it could cost a lot more. That’s probably why they chose to import from the US to begin with.

That doesn’t mean the US economy won’t be impacted by retaliatory tariffs, however. If it ends up being cheaper to get the tariffed goods from outside the US, American businesses can suffer from a loss of revenue, which could force employers to lay off workers.

Got questions for us about the tariffs? Get in touch.

Julio Batista, President and owner of Teddy Volkswagen in New York, speaks about how his operation is bracing for tariffs and how it will impact his business.

Julio Batista, owner and operator of Teddy Volkswagen in the Bronx, New York, said that increased tariffs will definitely hurt his business.

He hopes President Donald Trump continues to negotiate or change his mind so that they are short-lived.

Most of Volkswagen vehicles, primarily the most popular models — Tiguan and Jetta — are made in Mexico, Batista said. The Tiguan, which is their bestseller ,starts at $30,000 and could increase by $7,000 once the tariffs take effect, he estimated.

Batista said the dealership loaded up on inventory prior to Trump’s implementation of tariffs in the hopes they can keep prices steady for a few more months. Customers and inquiries have also doubled in the last few weeks as clients try to buy before tariffs, Batista added.

“I understand what (Trump is) doing, but it’s not a good idea. It hurts businesses like ours,” Batista said.

VW has a big plant in Puebla, Mexico, and the CEO of the company has said that despite the tariffs, they are not moving production to US.

A cargo ship loaded with containers sails out of Qingdao Port, east China's Shandong province, on January 13.

President Donald Trump’s belief in the almost mystical power of tariffs is rooted in his world view of winners and losers and his conviction that the US has long been ripped off by European and Asian powers that protect their industries.

“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,” Trump told reporters last week. “They’ve taken so much out of our country, friend and foe.”

Tariff policy is as old as the United States. But many economists blame restrictive trade policy for causing immense hardship in the Great Depression in the 1930s, and the post-World War II period saw the gradual lowering of trade barriers before a radical reshaping of global commerce as the 21st century dawned.

But recreating a 1950s-style idyll of American manufacturing is a stretch in an era when the US’ competitive edge and economic might is centered on service industries, technology and the rise of jobs and commerce based on artificial intelligence.

Read more here.

Business owners in North Carolina say they are concerned about the Trump administration’s newest planned tariffs — set to be announced later today — and warned that additional levies will impact their prices and customers.

The president and co-founder of Devil’s Foot Brewing in Asheville, North Carolina, Benjamin Colvin, said he has already seen production expenses increase due to tariffs on aluminum and steel. His company makes a variety of craft sodas and zero-proof cocktails.

Now, he’s worried that trend is going to continue, specifically pointing to lemons and limes that he sources from suppliers in Mexico.

“It’s concerning, it’s going to be expensive, it’s going to require us all to make decisions,” Colvin said at a news conference with other business owners in the state today.

Wendy Brugh, the owner of Dry Ridge Farm in Mars Hill, North Carolina, said tariffs will also affect farmers. She said they could make things like fertilizer, construction materials and animal feed more expensive.

Another farmer, Mary Carroll Dodd, the owner of Red Scout Farm in Black Mountain, North Carolina, said a lot of the supplies they use on small farms come from Canada and Mexico. Things like insect netting and tools, she said, come from the US’ neighbor.

Dodd said her supplier for potting soil told her that prices could increase from 8 to 10% because of the tariffs on some of the ingredients.

A view outside the New York Stock Exchange on March 3.

The US economy faces a growing risk of a recession as surging tariffs threaten to stunt growth, reignite inflation and lift unemployment, according to Goldman Sachs.

The Wall Street bank warned clients this week that it now sees a 35% chance of a recession in the next 12 months, up from 20% previously.

Goldman Sachs also increased its inflation estimate, slashed its 2025 GDP forecast to just 1% and bumped up its year-end unemployment rate outlook by 0.3 percentage points to 4.5%.

While Goldman Sachs still expects the US economy to avoid a downturn, other forecasters think it’s more of a 50/50 call. This is Goldman’s highest recession probability since the regional banking crisis two years ago. The catalyst now is the shock from President Donald Trump’s trade war, which is set to intensify this week.

Goldman Sachs blamed the “sharp recent deterioration in household and business confidence, and statements from White House officials indicating greater willingness to tolerate near-term economic weakness in pursuit of these policies,” the bank’s economists wrote in the report.

Read more here.

Stacks of shipping containers sit at the Port of Baltimore in Baltimore, Maryland, on Monday.

Republican senators warned Wednesday that the short-term impacts of President Donald Trump’s aggressive tariff policy, which he’s set to announce the details of later in the afternoon, should not be overlooked, even though they are open to his broader trade vision.

Sen. John Kennedy told CNN’s Manu Raju that he understands where Trump is “coming from” with his approach to tariff policy, adding, “the president’s saying if you’re a business in a foreign country and want to sell to America, move your business here and hire Americans, and in the long run he’s right.”

Trump is set to announce the details of his “Liberation Day” plan at 4 p.m. ET, as he aims to redraw economic agreements with US trading partners. The details of the new levies are still unclear, but Trump has teased everything from reciprocal tariffs on all countries; the enactment of delayed 25% tariffs on Mexico and Canada; as well as tariffs on lumber, copper, pharmaceuticals and microchips.

Kennedy said that in the “worst case scenario,” tariffs could raise inflation and interest rates, leading to a “slowing economy and a recession.”

GOP Sen. Shelley Moore Capito of West Virginia said reciprocal trade policies sound “sensible” and she wants to see American workers and businesses treated “fairly,” but added, “I think there is some trepidation, worrying about impacts on costs of groceries or other items, and automobiles, in particular, so I’m concerned about that.”

She told Raju she’s heard input from constituents mostly about how tariff would affect the products they produce and consume, but ” by and large, I’m supporting the President’s efforts.”

Consumer sentiment is plunging. The stock market is off to its worst start in years. Hiring has slowed down. Recession odds are on the rise.

Economists, consumers and Wall Street are lambasting President Donald Trump’s trade policy. But not everyone suffers from tariffs.

The United Autoworkers union has praised Trump’s auto tariffs after the group has lost thousands of jobs to factories in Mexico and Canada.

“We applaud the Trump administration for stepping up to end the free trade disaster that has devastated working class communities for decades,” the UAW said in a statement last week.

Free trade has its benefits, typically lowering the costs of goods for American consumers. But it has drawbacks too. It can devastate manufacturing industries, as companies build factories in countries that supply cheaper labor.

So history has shown that there are practical — and sometimes beneficial — use cases for tariffs. They can protect countries’ national security interests, address unfair trade practices and shore up domestic industries. Tariffs can also combat monopolization of critical imports.

However, like free trade, tariffs can also sting, particularly when they’re applied indiscriminately. Trump’s implemented and proposed tariffs would place taxes on trillions of dollars worth of goods, forcing companies to make painful decisions about reshoring production that they can’t easily bring back to the United States.

“Tariffs can work,” Connecticut Democratic Sen. Chris Murphy told CNN’s Christiane Amanpour Wednesday. But he argued Trump’s tariffs would only achieve chaos.

“He is applying tariffs with absolutely no corresponding domestic industrial incentives,” Murphy said. “And thus all that’s going to happen here is prices are going to go way up.”

United States flags are set on used cars at a dealership in the Queens borough of New York City, on February 3.

Isaac from Oregon asks, “Realistically how much will cars go up,”?

In response to your question, Isaac, we’ll direct you to some fresh CNN reporting:

With a 25% tariff about to hit every imported car on Thursday, prices could rise between $5,000 to $15,000 per vehicle, depending on the make and model, according to Goldman Sachs estimates. And the Trump administration could further send the automobile industry spiraling if it follows through with its plan to enact tariffs on car parts — since even American-made cars import a significant portion of their parts from Canada and Mexico. That could further slam car buyers if enacted.

For example, cars from Ford, Chrysler, GM and Honda are expected to face cost jumps from $4,000 to $10,000, according to a February estimate from Michigan-based think tank Anderson Economic Group. Electric car buyers are expected to pay at least $12,000 more per vehicle.

If you’re curious on whether you should buy a car now or later, read our full story.

Got questions for us about the tariffs? Get in touch.

Canadian and American flags fly on the Canadian side of the Ambassador Bridge in Windsor, Ontario, on March 8.

Canada finance minister promised a “strong response” to US President Donald Trump’s expected announcement about new reciprocal tariffs on imports later today.

Champagne stressed that Canada would never budge on its supply management system — a regime of production controls and tariffs on poultry, dairy and eggs that the country has had in place for over 50 years. Many farmers in the country credit the system with protecting their livelihoods.

“No matter the nature of the negotiations we will have with the United States of America or other countries, we will never allow supply management to be on the table,” the minister said.

A key part of supply management, and one that’s provoked the ire of the Trump administration, is Canada’s high tariffs on dairy. Though the tariffs are in some cases over 200%, they rarely kick in. As of March 10, the US had yet to meet even half of its quota for milk exports before Canada would apply its tax.

President Donald Trump’s affinity for tariffs is hardly a secret. As he’s repeatedly said, it’s among his favorite words in the dictionary. But for all his chatter about tariffs, it can be challenging to keep track of which ones are actually in effect versus the ones he has only threatened to implement.

While this will almost certainly change in a matter of hours, here are the tariffs that are currently in effect as of Wednesday morning:

US stocks were higher during a choppy trading session Wednesday as investors shook off uncertainty about President Donald Trump’s announcement on tariffs, set for 4 p.m. ET.

The Dow was higher by around 300 points, or 0.73%. The broader S&P 500 rose 0.8% and the tech-heavy Nasdaq gained 1.2%.

Similar to Monday and Tuesday, stocks opened lower Wednesday before climbing into the green.

“Regardless of what happens [today], tariff uncertainty is impossible to predict, and so rather than trying to read the tea leaves and adjust investments based on what’s going on in Washington, we’re focused on investing in companies that have superior cash flow generation during all seasons, and not just seasons when we’re worried about tariffs,” said David Bahnsen, chief investment officer at The Bahnsen Group.

While US stocks rebounded, global stocks were mixed. Europe’s benchmark STOXX 600 index fell 0.5%. Germany’s DAX index sank 0.66%.

In Asia, Japan’s Nikkei 225 index gained 0.28% and Taiwan’s benchmark index edged higher by 0.08%. Hong Kong’s benchmark Hang Sang index edged lower by 0.02%.

The yield on the 10-year US Treasury note rose to 4.21% Wednesday after settling at 4.156% on Tuesday, which was its lowest level this year. Yields rose Wednesday as investors sold bonds and stocks rallied.

Construction workers install a lumber roof at a new home build on Tuesday in Laveen, Arizona.

Tariffs could hobble homebuilding efforts in the US, at a time when the country needs to build millions of new homes to meet growing demand.

The sharp decrease in home affordability over the last four years has stung many Americans ­– and President Donald Trump won his bid for office partly on the back of dissatisfaction with the economy.

Trump’s tariff plan threatens to significantly increase the price of many raw materials used in construction, like lumber, aluminum, and steel, which could cause the price of new homes to rise.

Lately, the homebuying market has shown signs of life as the spring homebuying season kicks off and mortgage rates have fallen slightly over the past few weeks. But tariffs threaten the fragile recovery of the housing sector, which represents about 15% to 18% of GDP.

The National Association of Homebuilders estimated that $14 billion worth of imported goods were used in the construction of both new multifamily and single-family housing in 2024. The group estimates that new tariffs on China, Canada and Mexico are projected to raise the cost of imported construction materials by more than $3 billion, depending on the specific tariff rates.

Last week, President Donald Trump said he would be implementing a 25% tariff on all cars shipped to the United States as of 12:01 am ET on April 3.

For decades, because of a free trade agreement, automakers have treated Canada, Mexico and the United States as one big country, with no tariffs among them. But Trump wants to grow the domestic automaking industry.

He said he’s been in touch with the Big Three US automakers, Stellantis, Ford and General Motors, noting that “If they have factories here, they’re thrilled. If you don’t have factories here, they’re going to have to get going and build them.”

Even if automakers were to shift production to the US, it would take years to accomplish the switch. In the meantime, US consumers look set to face higher prices on their vehicle purchases.

Sen. Tim Kaine, D-Va., center, is joined by from left, Sen. Mark Warner, D-Va., Sen. Amy Klobuchar, D-Minn., left, and Senate Minority Leader Chuck Schumer, D-N.Y., during a news conference regarding President Donald Trump's pending tariffs on Canada, at the Capitol, on Tuesday in Washington.

Democratic Sen. Tim Kaine revealed he approached Sen. Mitch McConnell Tuesday evening about signing onto his effort to rebuke President Donald Trump by forcing a vote on blocking tariffs on Canadian imports and the Kentucky Republican pledged to back it before Kaine could even ask.

“I said, I want to talk to you about my Canadian tariffs bill. And you know, I didn’t even get to the question, and he said, ‘I’m with you,’” Kaine recounted.

Kaine indicated he has “rock solid support” from four GOP senators — McConnell, Susan Collins, Lisa Murkowski and Rand Paul — which would be enough for the Senate to symbolically rebuke Trump on tariffs. He also said there are others “who are thinking about it by haven’t declared” their support.

One likely reason for McConnell’s expected backing of Kaine’s effort is the pushback he has heard from his state’s agriculture industry.

Kaine also said he isn’t taking unanimous Democratic support for granted but disagreed with Democratic Whip Dick Durbin that there would be defections on their side.

Freshly canned beers move on an assembly line at The Can Van headquarters on February 19, 2025 in Sacramento, California.

Beginning at 12:01 a.m. ET on Friday, aluminum used in beer, as well as empty aluminum cans, will be subject to the 25% tariffs that went into effect on all imports of the metal last month, according to a notice published by the Commerce Department on Wednesday.

The move is likely an attempt by the Trump administration to close possible loopholes businesses have uncovered to get around the 25% aluminum tariff.

The problem with a trade war is it doesn’t simply end once tariffs are put in place. Countries typically retaliate with higher tariffs of their own, and that’s when a tit-for-tat trade war can start to get out of hand.

Even before President Donald Trump has announced his “Liberation Day” tariffs, scheduled to be unveiled at 4 p.m. ET at the White House, a number of America’s trade partners are lining up to warn Trump that they’ll retaliate quickly:

On top of America’s tariffs, retaliation itself could add significantly to US inflation, Yale’s Budget Lab said in a report this week.

President Donald Trump pledged during his reelection campaign to rework trade deals with US partners across the globe, citing a need to “put America first on trade.”

Since his return to the White House, he has rolled out a 20% levy on all Chinese imports, added a 25% tariff to all steel and aluminum imports and promised a 25% tariff on most imported cars and auto parts. He has said he plans to introduce additional tariffs on sectors such as pharmaceutical drugs, lumber, copper and semiconductor chips.

But Wednesday’s tariff schedule is being touted as his most aggressive trade policy yet, stretching across all trading partners and potentially involving all imported goods.

White House press secretary Karoline Leavitt said Tuesday that April 2 “will go down as one of the most important days in modern American history.”

President Donald Trump has floated the idea of higher tariffs on pharmaceutical products, though he has suggested that life-saving drugs could be spared. If they are not, the impact on many Americans could be unthinkable, according to one CEO.

Speaking to BBC World Service radio, Gareth Sheridan, the Irish CEO of Nutriband, a US health care company, noted that Ireland – which exports a lot of pharmaceuticals – makes a wide range of medications, including those used for chemotherapy and for treating heart conditions and diabetes.

“These types of treatments can’t afford a disruption in the global supply chain. You know, as a comparable situation, tariffs on automobiles: You can’t afford a BMW now? Okay, you can buy a Ford and you can still get to work,” he said.

Remember: Last year, the United States imported $232.7 billion worth of medicinal and pharmaceutical products, based on official US data.

Shipping containers are seen at the port of Oakland, California, on March 6.

President Donald Trump has outlined several reasons behind his aggressive tariff policy: Initially, he noted the tariffs could help the US gain leverage over other countries on non-economic matters, such as controlling the flow of fentanyl and immigrants.

And other times, he’s touted the potential revenue gains and the industrial revitalization of the United States.

“It can’t all be true,” Marcus Noland, executive vice president and director of studies at the Peterson Institute for International Economics, said in an interview with CNN.

“If you’re going to use it as negotiating leverage, then it’s not a revenue thing, because it’s not going to be permanent,” he said. “And if it’s to re-industrialize America, then we’re not going to have many imports — because we’re going to have re-industrialized — so it isn’t going to gain a lot of revenue.”

And that’s a “regressive tax,” research has shown, meaning that lower-income consumers will be hit the hardest.

The head of the Congressional Budget Office has estimated that tariffs could raise $800 billion over a period of 10 years. Other Trump administration officials touted much larger gains: in the ballpark of $6 trillion during the next decade.

Noland calls that latter figure “a magical number.”

Britain's Chancellor of the Exchequer, Rachel Reeves, leaves 11 Downing Street to deliver the spring statement at the House of Commons in London, on March 26.

The UK won’t “rush” to retaliate any tariffs imposed by US President Donald Trump on British goods, the country’s finance minister said on Wednesday.

“The government has been really clear that we are going to approach this in a clear-headed way and always represent the national interest,” UK Chancellor Rachel Reeves told lawmakers in parliament.

Reeves said that she met with some major UK exporting businesses Wednesday, just hours before Trump is expected to announce a sweeping set of tariffs on the US’s trading partners.

“They don’t want government to rush into any response because the prize on offer is an economic agreement,” she added. “We don’t want to do anything that undermines that. We don’t want to get ahead of ourselves.”

Reeves noted that Britain would wait to see how other countries retaliated to any forthcoming tariffs from the White House before deciding how to respond.

“We won’t do anything to put (an economic agreement) in jeopardy,” she said.

The Treasury Department headquarters are seen in Washington DC on March 27.

The tariff rates President Donald Trump reveals Wednesday will amount to a ceiling, and can be negotiated downward, his Treasury Secretary Scott Bessent told lawmakers a day ahead of the announcement, according to a person familiar with the conversation.

Bessent’s remarks to members of Congress suggest the administration views the new duties as a negotiating tactic to pressure other countries to lower their own duties on US imports.

Trump has suggested as much, saying he is flexible as other countries adjust their rates. But he’s also promised to raise tariff rates if other nations retaliate — a sign the figures announced Wednesday could go up or down.

Bessent was meeting with Republicans to discuss Trump’s economic agenda. Many lawmakers have voiced concern about the new tariffs and if they could raise prices for their constituents.

President Donald Trump wants to raise revenue from tariffs to pay down debt and give Americans a tax break. He also wants to boost America’s manufacturing and grow jobs at factories.

He could achieve that — but it would be painful, according to Yale’s Budget Lab. The drawbacks would almost certainly outweigh the rewards.

The Budget Lab found that the most significant tariff proposal Trump is considering — a 20% across-the-board tariff on all goods coming into the United States — would raise between $3.1 trillion and $4.1 trillion over a decade. And it would raise prices by an alarming rate.

Tedeschi, a former economic adviser in the Obama administration, conceded that broad tariffs could “absolutely” make some US factories more profitable and allow them to hire more people.

“But for every factory that can expand its payroll, more businesses and factories will have to lay workers off or even close entirely. Net-net, it ends up being a negative for the United States,” Tedeschi said.

Trucks queue near the Mexico-US border before crossing the border at Otay Commercial crossing in Tijuana, Baja California state, Mexico, on March 4.

Among the many tariff proposals Trump is apparently considering, the worst-case scenario appears to be a 20% universal tax on all US imports. That would shrink the US economy, lift prices and significantly erode Americans’ disposable income, according to research from The Budget Lab at Yale.

The nonpartisan research center finds that a 20% universal tariff, which CNN has reported is an option being considered by President Donald Trump, would raise between $3.1 trillion and $4.1 trillion over a decade. Trump continues to weigh several tariff options and it is not yet known what his final proposal will be.

But those tariffs, along with retaliation by US trading partners, would likely cost the typical middle-class household $3,800 per year in disposable income due to higher prices, The Budget Lab found.

The top 10% of earners would see their inflation-adjusted income drop by $9,500 per year, while the bottom 10% would lose $2,400, researchers said.

Lower-income households would likely get hit the hardest on a relative basis, with their disposable income dropping by 5.5%, compared with 1.9% for the top 10%.

The hit to consumers would come from higher prices, especially on items such as food, clothes and electronics. The Budget Lab finds that a 20% tariff, along with full retaliation, would lift prices by 2.6%. If other nations choose not to retaliate, prices would increase by 2%.

Mexican President Claudia Sheinbaum gives her morning press conference at the National Palace in Mexico City today.

Mexican President Claudia Sheinbaum said she will unveil a broad economic plan on Thursday in response to President Donald Trump’s sweeping new tariffs, but stopped short of providing many details.

She pointed to efforts made by former Brazilian President Dilma Rousseff to strengthen her country’s automotive industry and said it’s something her administration is studying.

“The problem is that we’re importing many vehicles,” she said. “If we want to strengthen the auto industry … we have to make sure cars that are bought in Mexico are made in Mexico.”

“The program we’ll present tomorrow isn’t only related to the tariffs that the US could impose,” she added.

Canada's Ontario Premier Doug Ford speaks to the press during the first Ministers Meeting in Ottawa, Canada on March 21.

Ontario Premier Doug Ford said that increased tariffs on Canadian goods will ultimately hurt American families, adding that President Donald Trump’s so-called “Liberation Day” is more like “Termination Day.”

Ford told CNN’s Wolf Blitzer a majority of lumber that the US imports to build homes comes from Canada, so “it’s going to increase the cost of a house.” Additionally, Ford said that the cost of cars will also increase. “We ship as many autos as we buy, but the cost of a pickup truck or an automobile is going to go up,” he said.

Still, Ford said he does hope that Trump ultimately settles on lower tariff increases.

“I’d like to just go back to the original deal. We had a great deal, he said it was the greatest deal ever. I guess it’s not the greatest deal ever now,” Ford said, referring to the United States-Mexico-Canada Agreement, adding that Canada and the US should work together as partners and not adversaries.

US stocks edged into the green Wednesday morning ahead of President Donald Trump’s expected announcement on tariffs, which is set for 4 p.m. ET.

The Dow climbed higher by 100 points, or 0.24%. The broader S&P 500 edged higher by 0.2% and the tech-heavy Nasdaq Composite gained 0.15%.

Stocks have been volatile this week. The S&P 500 on Tuesday sank as much as 0.95% before ending the day 0.38% higher.

“We expect volatility to rise given the difficulties of forecasting tariffs and the ultimate impact on the economy and earnings,” said Kurt Reiman, head of fixed income for the Americas at UBS Global Wealth Management.

“Extreme fear” has been the sentiment driving markets since Friday, according to CNN’s Fear and Greed Index. Investors are looking to build on a three-day winning streak for the S&P 500 despite the uncertainty around tariffs.

“Markets have oversold the tariff threat and now the risk is a reversal to the upside if the tariff bark turns out to be bigger than the tariff bite,” said Jamie Cox, managing partner at Harris Financial Group.

European Central Bank President Christine Lagarde speaks to the media in Frankfurt, Germany, on March 6.

Several European officials spoke out against tariffs today ahead of President Donald Trump’s announcement.

Similar warnings came from the European Union’s executive arm and the French government.

Olof Gill, a spokesperson for the European Commission, warned of looming “pain” both in Europe and the United States.

Although the French government does not yet know the details of US tariffs due to be unveiled later, “they risk being pretty powerful,” spokesperson Sophie Primas told reporters.

European officials have been warning against higher tariffs for weeks. “In our interconnected world, increased trade frictions are detrimental to global (economic) growth and welfare,” Lagarde said in a speech last month, noting that such frictions, including tariffs, raised costs and disrupted production.

A shopper carries a bag in San Francisco, California, on January 7.

America’s economic engine is running a little rough these days.

Consumer confidence is cratering, debt burdens are growing, people are worrying more about their jobs and they’re pulling back on some spending out of caution.

High inflation and high interest rates have contributed to vulnerabilities among consumers, making them all the more susceptible at a time when the sheer unpredictability of the Trump administration’s policies are chilling spending and investment plans.

And now, massive tariffs are set to be rolled out, raising the cost on almost everything Americans buy.

“The consumer sees darkening clouds for the economy ahead,” said Chris Rupkey, chief economist at FwdBonds.

Consumer spending powers more than two-thirds of the nation’s economic activity; so if that engine falters, the economic consequences can start spiraling.

A worker works on photovoltaic modules production for solar panels in a factory in Suqian, east China's Jiangsu province on January 23.

“Prior to Trump, what tariffs has the US put on other countries?” Patrick in Canada asks.

While we can’t list every tariff enacted in US history in this short post, there were some tariffs imposed by the Biden administration on China.

In September 2024, the Biden administration imposed tariff hikes on certain Chinese-made products, meaning the tariff rate went up to 100% on electric vehicles, to 50% on solar cells and to 25% on electrical vehicle batteries, critical minerals, steel, aluminum, face masks and ship-to-shore cranes from September 27, according to the US Trade Representative’s Office.

Tariff hikes on other products, including semiconductor chips, were set to take effect in the two years after that date.

Another thing worth noting is that Trump implemented sweeping tariffs on about $300 billion of Chinese-made products when he was first in office. Biden kept those tariffs in place and, after the USTR finished a multiyear review earlier this year, decided to increase some of the rates on about $15 billion of Chinese imports.

Got questions of your own? Ask us here.

President Donald Trump shared a Fox Business segment in which US Small Business Administrator Kelly Loeffler praised “Liberation Day,” the term he coined to mark his announcement of sweeping new tariffs.

Trump posted the segment on Truth Social and highlighted the portion of the interview where Loeffler tells Maria Bartiromo that “Liberation Day” is an “exciting day” and “is the single greatest salvation, for not just small businesses, but for America.”

The president is expected to announce new tariffs today at 4 p.m. ET from the White House Rose Garden.

Here’s what we know: It remains unclear what Trump’s plans are as he attempts to negotiate new terms for economic agreements. As of late Tuesday, Trump and his team were still reportedly weighing options of what plans will be unveiled today. For months, Trump kept businesses and nations across the globe largely in the dark on his tariff plans that revolve around what he refers to as “reciprocal tariffs.” But on April 2, he’s promised to answer at least some of their burning questions.

Today’s announcement is unlikely to relieve businesses that have been craving certainty since Trump’s November victory. Rather, it’ll open a whole new can of worms as countries respond to new tariffs with countermeasures on American goods, setting the stage for a new phase of negotiations that could escalate an already bitter trade war.

CNN’s Elisabeth Buchwald contributed to this report.

Shipping containers are seen at Union Pacific's Los Angeles Trailer and Container Intermodal Facility in downtown Los Angeles, California on Tuesday.

President Donald Trump’s sweeping tariffs are expected to have implications for businesses around the world, especially if foreign countries retaliate, which many have promised.

Trump’s tariffs threaten to upend a global trade order that has persisted for decades, and business leaders are worried that tensions will spiral out of control after Trump’s big announcement in the Rose Garden.

“There is a clear systemic risk to the global trading system if the reciprocal U.S. tariffs spark a tit-for-tat trade war involving multiple major trading partners,” he said.

Denton added that “the reciprocal tariff plan could well represent the single largest escalation in U.S. tariffs in the last century.”

The European Union, Mexico, Canada, China, Japan, and South Korea have all pledged to respond to Trump’s latest tariffs.

A customer selects a piece of wood from the lumber section of Home Depot on March 3 in Pasadena, California.

Softwood lumber — which is sourced from the likes of pine, spruce, firs and other conifers — is prized for its light weight, workability and strength. As such, its applications are vast, but it’s a critical ingredient in the US homebuilding industry.

And considering that 30% of the softwood lumber consumed in the US is imported (with Canada accounting for north of 80% of those imports), American homebuilders have been sounding the alarm that the tariffs could further exacerbate the housing affordability crisis.

Builders estimate that tariffs on lumber and other critical homebuilding materials could up the average cost of a home by $9,200, according to the March National Association of Home Builders/Wells Fargo Housing Market Index.

Economists expect that lumber prices could increase in the near-term and caution that expanding the domestic timber and lumber industry could take time.

A rosier outlook: However, some within the lumber sector say the new tariffs, especially on imports coming from Canada, would help level the playing the field. They also say the existing US industry has a significant amount of existing capacity that’s not currently being utilized.

Jason Brochu, co-president of Pleasant River Lumber in Maine, said his two mills in the Pine Tree State are running at 60% capacity but could increase its workforce and production in a matter of months, if the demand is there.

“It can happen fairly quickly,” he added.

President Donald Trump spent much of yesterday huddled with his top trade advisers, with many friends and allies calling him up until the eleventh hour with ideas on how best to move forward with his tariff plan, sources familiar with the talks told CNN.

The plan will be unveiled in the Rose Garden, his first event in the White House space of his second term, and will include the pomp and circumstance the president expects to accompany an announcement of this magnitude, two White House officials told CNN.

The event was initially scheduled to begin at 3 p.m. ET, but was later moved to 4 p.m.ET, the two White House officials told CNN — notable given it will now kick off after markets close.

The announcement comes as top Trump administration officials struggle to articulate what the president’s endgame is. Trump officials, including White House press secretary Karoline Leavitt on Tuesday, have repeatedly urged the public to trust Trump and have pointed to the economy during his first term as justification.

Dave Kelleher speaks to CNN about how the impending tariffs may impact his business.

Dave Kelleher, the owner of a David Dodge Chrysler Jeep Ram car dealership in Glen Mills, Pennsylvania, spoke to CNN about how the impending tariffs may impact his business.

Kelleher gave an example of a car that could “go from $30,000 ostensibly to $37,500, and it’s that quick,” he said, snapping his fingers. “And that kind of change in price moves that payment $175 a month, and our customers — they’re middle-class people — they just can’t afford that kind of bump.”

Kelleher also told CNN’s Danny Freeman that he has a customer who ordered a $86,000 Ram truck — which will skyrocket in price if it’s not shipped today, causing Kelleher to likely take a $20,000 hit.

Kelleher said he thinks President Donald Trump’s aim to bring more jobs to the US is “admirable.” But he added:

Remember: Trump has imposed 25% tariffs on all steel and aluminum imports and a 25% tariff on foreign cars that is set to go into effect on Thursday. A 25% tariff on foreign auto parts is set to go into effect by early May. The president said this past weekend that he doesn’t care if automakers hike prices because of his tariffs, reiterating, “people are going to start buying American cars.”

President Donald Trump says he believes tariffs are a panacea: a catch-all economic tool that can restore America’s manufacturing prowess, bring foreign nations to heel on key disputes, restore the balance of trade and bring in gobs of money that can help pay off the US deficit and reduce Americans’ tax burdens.

Trump is correct that tariffs can help fulfill many if not all of those promises: When used effectively, tariffs can help boost production at home by making foreign goods more expensive. Because America is an enormous and diverse economy that doesn’t rely on trade as much as its neighbors, the United States could use tariffs to inflict serious damage on other countries’ economies without plunging itself into a recession. Revenue raised by tariffs could help offset some of its deficits.

But one major problem with Trump’s plan is that tariffs can’t achieve all of those goals at the same time:

For example, if tariffs are a pressure campaign, they have to go away once the countries acquiesce — which means there will be no tariffs to restore the trade balance.

If tariffs are designed to promote America’s manufacturing sector, they can’t also raise revenue to offset deficits.

And if Americans switch to “Made in the USA” goods, then who pays the tariff on foreign products?

As the saying goes, if it sounds too good to be true, it usually is.

Canned soup and vegetables are displayed in a grocery store on February 11, 2025 in New York City. As President Donald Trump has imposed a 25% tariff on all steel and aluminum imports into the United States, economists and trade experts are saying that the price of consumer goods, which use aluminum and metal, could rise as the tariffs take effect.

Democratic Rep. Mark Pocan said President Donald Trump’s expected tariffs on Wednesday are coming out of “either spite or who he’s upset with” and will lead to consumers paying for them.

He continued, “But at the end of the day, the people who pay it are the consumers.”

Pocan said Republicans who agree with Trump’s agenda will pay a price at the polls.

“The attacks that we see coming from the Trump administration and from Elon Musk right now are epic, and people don’t like them. And Republicans who are complicit are going to pay a price,” he said.

US stocks opened lower Wednesday as investors await President Donald Trump’s announcement on tariffs.

The Dow was down 330 points, or 0.78%. The S&P 500 fell 1% and the tech-heavy Nasdaq Composite slid 1.43%.

Trump’s back and forth on his trade policy has roiled markets, leaving Wall Street eager for clarity, though bracing for continued uncertainty.

“Investor sentiment remains skittish,” said Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, in a Tuesday note.

Analysts at Bank of America Global Research said in a Tuesday note that without relief from uncertainty, stocks could slide further in the short term.

“It’s very tough to know what to expect, and we don’t even know what the tariffs actually are,” said Michael Green, chief strategist and portfolio manager at Simplify Asset Management.

The New York Stock Exchange seen on March 18 in New York City.

Sometimes, even bad news can be good news on Wall Street.

Markets have been on a knife’s edge this week, awaiting President Donald Trump’s tariff announcement this afternoon, and there’s a sense among some investors that any news, even if it’s bad for the long-term health of the economy, will bring a level of clarity that investors have been craving.

That could spark a brief “relief rally,” Mike O’Rourke, chief market strategist at Jones Trading, said in a note late Tuesday.

That’s what often happens when Wall Street expects a company to have terrible earnings — once the earnings come out, the stock might rally or remain flat, because at least investors can see what they’re dealing with. The anticipation is worse than the event.

But this time may be different, according to O’Rourke.

“There can be a relief rally, but there won’t be certainty,” he writes.

Tariffs will likely bring retaliation, and retaliation brings escalation.

“The situation is likely to remain fluid for some time,” O’Rourke said. “Ideally, several key nations would drop tariffs and global trade would benefit. That would be the best-case scenario, but it appears nearly impossible.”

“What has been the response from U.S. trading partners and international leaders? Could these tariffs lead to retaliatory measures, and what might these look like?” are some of the questions asked by Amedee, in California.

Many international leaders have been quick to condemn the previewed tariffs, warning that they don’t want to enter into a trade war, and saying their countries will take strong countermeasures if they are imposed.

Here’s what some of them had to say:

• Europe: On Tuesday, head of the European Union, Ursula Von der Leyen said bloc had a “strong plan” for striking back at the US, if required. Already, Europe has responded to Trump’s steel and aluminum tariffs by unveiling countermeasures on up to 26 billion euros ($28 billion) worth of American goods exports, including tariffs on boats, bourbon and motorbikes.

• Canada, China, Japan and South Korea are also readying retaliation against Trump’s looming tariffs. The three Asian countries plan to announce retaliatory tariffs in lockstep, Chinese state broadcaster CCTV said Monday. They held economic talks Sunday for the first time in five years, vowing to bolster fair trade and strengthen economic ties among them.

• Canada: Prime Minister Mark Carney told President Donald Trump on Friday that his nation would retaliate against the US with tariffs of its own if Trump pressed forward with his promised levies.

• United Kingdom: Prime Minister Keir Starmer said his country would take a “pragmatic approach” to its response and that a “trade war is in nobody’s interest.”

We are answering questions from readers on the tariffs. You can submit your questions here.

An exterior view of the Marriner S. Eccles Federal Reserve building on November 8, 2024, in Washington.

President Donald Trump’s trade war, which is expected to kick into high gear Wednesday, will undoubtably affect the US economy. Federal Reserve officials are watching closely how everything plays out.

Trump’s economic team is still hashing out the details of the new duties in the eleventh hour, but economists widely expect Trump’s tariffs in most cases to raise inflation and weaken economic growth. The Fed is tasked by Congress to tame inflation and promote full employment.

Most Fed officials in recent remarks have acknowledged the high level of uncertainty stemming from the dizzying back-and-forth on tariffs. Most have also said that it’s still not clear how the economy will ultimately respond to Trump’s shock therapy.

Here’s what Fed officials have said recently on tariffs.

Stacks of shipping containers sit at the Port of Baltimore in Baltimore, Maryland, on Monday. Trump is set to announce today exactly what tariffs will be imposed and whether they will target entire sectors.

“Who pays the tariffs imposed by the White House: the government of the foreign country? Or, American based businesses that buy goods and services from other countries?,” Ruth, from the Midwest asks.

In response your question, Ruth, it has been at times confusing identifying who has to pay the tariff.

President Donald Trump and members of his administration have often shrugged off concerns about the additional cost tariffs present for US businesses, claiming foreign countries are the ones who pay for it. That’s not exactly true, though.

Domestic businesses that import products into the country pay the tariffs up front, contrary to Trump’s claims that exporting nations foot the bill.

The actual transaction occurs at the 328 points of entry into the US designated by Customs and Border Protection to take in imports, including airports, railways, roads and ports.

At those ports of entry, CBP agents collect tariff revenue from the domestic businesses importing the products, which is calculated based on how the merchandise is classified and where it came from, said Ted Murphy, a lawyer at Sidley Austin who specializes in advising businesses on customs compliance issues told CNN in March.

But Trump isn’t entirely wrong in saying that other nations pay for tariffs levied on them, Murphy said. That’s because when businesses know they’ll have to spend more to import goods from one country versus another, they may decide it makes more financial sense to find a new supplier elsewhere or, in Trump’s ideal world, shift their production to the US.

In either case, the economy of the country whose goods are tariffed can suffer from the loss of revenue, potentially resulting in job losses.

But exporting nations often don’t just accept tariffs without fighting back.

British Prime Minister Keir Starmer leaves 10 Downing Street in London, Britain, today.

UK Prime Minister Keir Starmer said his country will take a “pragmatic approach” in its response to looming tariffs from his US counterpart’s administration.

“A trade war is in nobody’s interest and the country deserves, and we will take, a calm, pragmatic approach,” Starmer said today to Parliament.

On Monday, a spokesperson for Starmer said that the British government has been “actively preparing for all eventualities,” according to a Reuters report. The spokesperson told reporters that talks between the UK and US to strike a deal to avoid the tariffs will likely continue beyond Wednesday, Reuters reported.

As President Donald Trump and his team worked Tuesday to “perfect” the tariffs he plans to unveil in the Rose Garden, he continued to weigh ideas that differed dramatically in size and scope — underscoring just how divergent some of his options are in the hours before his announcement.

As of late yesterday, the White House had not arrived at a final decision. These were still under consideration, according to people familiar with the matter:

Trump and his aides were also studying new, additional options, including a more targeted flat-rate option just on certain countries.

The tariffs will go into effect immediately, the White House said yesterday, but added he would be open to negotiation once they’re in place.

Trump’s Rose Garden event is scheduled for 4 p.m. ET, just as US markets close. A number of lawmakers and industry executives have been invited to attend, according to a person familiar with the planning.

Under debate is not only the plans themselves, but what Trump hopes to achieve from them. He has pointed to tariffs both to reorient global trade and as a negotiating tactic, and his aides have also said they will also be revenue raisers to offset planned tax cuts.

China, Japan and South Korea will respond to President Donald Trump’s looming tariffs in lockstep, Chinese state broadcaster CCTV said Monday.

The three Asian countries held economic talks on Sunday for the first time in five years, vowing to bolster fair trade and strengthen economic ties among them — just days before the United States announces sweeping tariffs on all trading partners.

On Wednesday, Trump will unveil wide-ranging tariffs that match the ones foreign countries impose on the US, so-called reciprocal tariffs. Long-time US allies, such as South Korea, won’t be spared, Trump has said.

“South Korea’s average tariff is four times higher,” Trump said earlier this month in his joint address to Congress. “Think of that: four times higher. And we give so much help militarily and in so many other ways to South Korea, but that’s what happens.”

Meanwhile, Trump has renewed trade tensions with China, levying 20% duties on the country, on top of the tariffs he already imposed in his first term. China has responded swiftly to Trump’s tariffs, imposing 15% duties on chicken, wheat, corn, and cotton imports from the US.

People work on the floor at the New York Stock Exchange in New York on Monday.

US stock futures were lower Wednesday morning ahead of President Donald Trump’s “Liberation Day” tariffs, set to be unveiled at 4 p.m. ET.

Dow futures were lower by 311 points, or 0.74%. S&P 500 futures fell 0.95%. Futures tied to the Nasdaq 100 slid 1.15%.

Stocks are coming off two volatile sessions this week. The S&P 500 on Monday sank as much as 1.65% in the morning before fluctuating and closing 0.55% higher. The index on Tuesday fell 0.95% in the morning but closed 0.38% higher.

Wall Street is eager for a boost in markets on more clarity about Trump’s tariffs, though some investors acknowledge that uncertainty might linger beyond this afternoon’s announcement.

“We would anticipate not getting answers to everything [today],” said Tom Hainlin, national investment strategist at US Bank Wealth Management Group.

Hainlin said there’s still uncertainty around retaliatory tariffs from other countries and whether the Trump administration could shift its policy.

“Tariff and counter tariff concerns continue to dominate markets,” said Mohit Kumar, chief economist and strategist for Europe at Jefferies, in a Tuesday note.

A cargo ship full of shipping containers is seen at the port of Oakland, California, on February 3.

In response to our call-out asking for any questions you may have about tariffs, we’ve received a question from one of you: what is it? Let us explain!

Simply, a tariff is a tax on goods coming from another country.

It’s typically structured as a percentage of the value of the import and can vary based on where the goods are coming from and what the products are.

Domestic businesses that import products into the country pay the tariffs up front, with the actual transaction taking place at the 328 points of entry into the US designated by Customs and Border Protection to take in imports, including airports, railways, roads and ports.

At those ports of entry, CBP agents collect tariff revenue from the domestic businesses importing the products, which is calculated based on how the merchandise is classified and where it came from, said Ted Murphy, a lawyer at Sidley Austin who specializes in advising businesses on customs compliance issues.

U.S. President Donald Trump signs a series of executive orders including 25% tariffs on steel and aluminum in the Oval Office at the White House on February 10.

President Donald Trump says today is “Liberation Day” and has floated a number of ideas, proposals and plans ahead of his 4 p.m. ET Rose Garden announcement.

The truth is we don’t really know what to expect today. Sources with knowledge of the president’s plans tell CNN Trump may not finalize his plans until right before the announcement.

That uncertainty has upended stock markets, consumer sentiment and business’ hiring, because it’s hard to make a financial decision when you don’t know what’s coming down the pike.

Despite Trump and his advisers publicly suggesting multiple proposals — including reciprocal tariffs, taxes on particular products and even across-the-board tariffs — we don’t know which if any (or all) of those plans Trump will enact, or whether there will be any exemptions, exceptions, carve-outs, or granularity in the plan that could significantly affect the impact of the tariffs that will be implemented.

Trade policy is extraordinarily complex. For example, if we get reciprocal tariffs, will the United States match the complex tariff schedules for literally every single product imported from every nation? Or will America tax particular products or certain nations? Will the United States match graduated tariffs that increase based on import targets?

We may get some clarity today. We may not. We’ll find out at 4 p.m. ET.

Watch CNN’s Alayna Treene’s reporting on the announcement:

Welcome to our coverage of what President Donald Trump has dubbed “Liberation Day,” which is redrawing economic agreements with the US’s trading partners.

While the details of the new levies remain unclear, Trump has teased everything from reciprocal tariffs on all countries to the enactment of delayed 25% tariffs on Mexico and Canada.

There will be a lot of news to sort through today as we learn more details about the expected tariffs, and we’ll be working to unpack exactly what these policies will mean for American consumers (and their wallets).

If you have any questions about the tariffs, let us know in the form below. We’re bringing you the latest responses and reactions throughout the day right here.

New vehicles are parked on a pier in Baltimore on Monday.

Many Americans say tariffs hurt the nation’s economy and they expect President Donald Trump’s policies to increase inflation, according to a new Marquette Law School poll released this morning.

A 58% majority say they think that, in general, imposing tariffs on products imported from other countries hurts the US economy, with 28% saying it helps, and 14% that it doesn’t make much difference. The survey didn’t ask about Trump’s specific plans for tariffs, details of which have remained largely up in the air.

Fifty-eight percent also say they think Trump’s policy proposals will increase inflation, with 30% saying they expect them to decrease it, and 12% expecting them to have no effect.

The poll puts Trump’s overall job approval at 46%, with 54% disapproving, roughly on par with other recent polling.

The Marquette Law School poll was conducted from March 17 to 27 and surveyed 1,021 US adults, using the SSRS Opinion Panel, a nationally representative online panel. Results among the full sample have a margin of sampling error of +/- 3.5 percentage points.

Wall Street is desperate for clarity on tariffs as President Donald Trump prepares to lay out his “Liberation Day” trade strategy on Wednesday.

Trade war fears and confusion have rocked markets for weeks. US stock futures are pointing to a modestly lower open on Wednesday, hours before Trump’s Rose Garden event on tariffs.

“I’m not sure we’re going to be liberated from all the uncertainty,” Sonders said.

The Schwab executive said that even once the broad trade plan is announced, key questions will remain, including how consumers and businesses will react, what happens to inflation and what the Federal Reserve will do in response.

Still, market veterans told CNN said that if Trump announces tariffs short of the worst-case 20% universal tariff, US stocks could experience a short-term relief rally.

“Better or worse often matters more than good or bad when it comes to short-term market reactions,” Sonders said.

Art Hogan, chief market strategist at B. Riley Wealth Management, told CNN that Wall Street is bracing for a “sledgehammer, not a scalpel” on “Liberation Day.” He said investors have been frustrated by the “haphazard” way tariffs have been rolled out by Trump.

“It seems like they’re making the rules up as they go along, and that’s probably not far from reality,” Hogan said.

Chinese Foreign Minister Wang Yi said in comments published Tuesday by state broadcaster CCTV that Beijing would “counterattack” if the US continues to engage in “blackmail” over tariffs.

White House press secretary Karoline Leavitt speaks with reporters on Monday.

For weeks, President Donald Trump has promoted April 2 as “Liberation Day” in America, when a number of massive tariffs will be announced to fulfill the administration’s ambitious economic agenda.

Trump is set to unveil his tariff plan at 4 p.m. ET on Wednesday in the first Rose Garden event of his second term, White House press secretary Karoline Leavitt said Tuesday.

He posted on Truth Social this morning, previewing his afternoon announcement, saying, “IT’S LIBERATION DAY IN AMERICA!”

“This is obviously a very big day,” Leavitt said. “He is with his trade and tariff team right now, perfecting it to make sure this is a perfect deal for the American people and the American worker.”

Leavitt said it is ultimately up to Trump to decide what tariffs to impose. He and his advisers have contradicted themselves over the past days and weeks as they have tried to set expectations about what would be announced on April 2.

“He has a brilliant team of trade advisers,” Leavitt said Monday, listing Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, US Trade Representative Jamieson Greer, trade adviser Peter Navarro, senior aide Stephen Miller and Vice President JD Vance.

Traders work on the floor of the New York Stock Exchange at the opening bell on March 24.

President Donald Trump’s tariff proposals have kept investors in a cloud of uncertainty, and stocks after coming off a dismal first quarter. The S&P 500 fell 4.6% across the first quarter, recording its worst start to a year since 2022 and its worst quarter since September 2022. The Nasdaq Composite fell 10.4% across the first quarter, posting its worst start to a year since 2020 and its worst quarter since June 2022.

The US dollar index, which measures the dollar’s strength against six foreign currencies, is down almost 4% this year, its worst start to any year since 2016.

That’s because traders had expected Trump to usher in a pro-business boom, enabling the stock market to continue its historic run. But his commitment to an economic agenda that prioritizes tariffs has left investors perplexed.

“The uncertainty level is still high, and nobody really knows what to expect,” said Thomas Martin, a senior portfolio manager at Globalt Investments.