On Monday, White House officials said US President Donald Trump will announce details of the country’s retaliatory tariffs at an event today. President Trump has called today “Liberation Day.” The tariffs are expected to be deep and far-reaching. In response, several countries and regions have said they are preparing their own retaliatory tariffs against the US. Extensive tariffs are likely to disrupt trade activity, which could weigh on overall economic activity.

• President Trump is scheduled to announce his retaliatory tariffs today from the Rose Garden. Many countries around the world are expecting to face tariffs, including Canada. The retaliatory tariffs will match those levies from other economies that are placed on US goods.
• A 25% tariff on automobiles, announced last week, is expected to come into effect tomorrow and be broadened to automotive parts in May. US automakers oppose the tariff and are highly concerned about parts and supplies having duties. US automakers are trying to get the tariffs on automobiles and parts stopped.
• Other economies are likely to respond. The European Union (“EU”) has noted that it has a robust plan to retaliate if needed. In response to the aluminum and steel tariffs, the EU has already announced tariffs on US$28 billion worth of goods beginning in mid-April.
• Global economic activity could be dragged down by tariffs. Trade activity will likely slow. Canada’s economic growth is expected to soften amid the trade disruption with its largest trade partner.

This day was noted early by the President as he had his team analyze tariffs on the US. President Trump hopes his tariffs will move manufacturing capabilities back to the US and make the country less reliant on foreign goods. These tariffs could have a significant impact on global economic activity, including in the US. Markets expect retaliatory tariffs from other countries and negotiations with the US to potentially have tariffs removed.

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