Trump’s 'Liberation Day' for tariffs: What it means for businesses and economy
US President Donald Trump has dubbed this Wednesday as “Liberation Day,” promising to unveil a new round of tariffs aimed at freeing the United States from reliance on foreign goods. While the details remain vague, the stakes are high for American families, businesses, and the global economy.
What’s in store with Trump’s new tariffs?
Trump plans to impose import taxes, including “reciprocal” tariffs that match rates imposed by other countries and account for subsidies. Target nations include the European Union, South Korea, Brazil, and India, according to new agency AP.
“This is the beginning of Liberation Day in America,” Trump announced. “We’re going to charge countries for doing business here and taking our jobs, our wealth, and a lot more.”
Trump’s tariffs could cover a wide range of products, including:
- Automobiles: A 25% tax on foreign cars, with Trump arguing it’ll boost US auto sales.
- Pharmaceuticals, Copper, and Lumber: Proposed tariffs targeting specific industries.
- Oil from Venezuela: A 25% tariff, despite the US also importing Venezuelan oil.
- China: An extra 20% tax on goods due to fentanyl production concerns.
- Canada and Mexico: Separate tariffs aimed at curbing drug smuggling and illegal immigration.
While Trump claims these tariffs will spur domestic investments, he also hints at potential negotiations to ease the taxes once agreements are reached.
What it means for US economy
Most economists warn that these tariffs could hurt the US economy:
- Higher prices: Consumers may face increased costs for cars, groceries, housing, and more.
- Sluggish growth: Corporate profits could decline, slowing economic expansion.
- Job market pressure: While Trump suggests tariffs will create jobs, the reality may be job losses in industries reliant on global supply chains.
Economist Art Laffer estimates the auto tariffs could add $4,711 to the cost of each vehicle. Goldman Sachs predicts US economic growth will slow to just 0.6% this quarter, down from 2.4% at the end of last year.
Columbus Mayor Andrew Ginther warned that tariffs could raise median home costs by $21,000, making affordability a bigger issue.
Some officials argue tariffs will be a one-time price adjustment, but others fear retaliation from other countries could trigger an inflationary spiral.
Global reactions: allies and adversaries push back
The international community has reacted strongly:
- Canada: Prime Minister Mark Carney criticized the tariffs, calling them a “break” in US-Canada relations.
- France: President Emmanuel Macron called the tariffs “not coherent,” warning they would harm global value chains and create inflation.
- Mexico: President Claudia Sheinbaum has taken a more measured stance, focusing on protecting jobs.
- China: The government condemned the tariffs, emphasizing that “there are no winners in trade wars.”
Why call it “Liberation Day”?
Trump’s use of the term isn’t new. He previously referred to:
- November 5, 2024: The presidential election day, calling it “Liberation Day.”
- January 20, 2025: His inauguration, labelling it as a day of national redemption.
For Trump, tariffs are not just economic tools—they represent a symbolic fight for America’s sovereignty and prosperity.
However, critics argue that the consequences of this “Liberation Day” will likely include economic turmoil, higher consumer costs, and strained international relations.
“I don’t see anything positive about Liberation Day,” said Phillip Braun, a finance professor at Northwestern University. “It’s going to hurt the US economy, and other countries will retaliate.”