President Donald Trump proclaimed “Liberation Day” in the United States on Wednesday as he prepared to impose sweeping new tariffs that would escalate a trade war with global partners, increase prices and upend a decades-old trade order.

Trump has kept the world guessing on the details of the tariff plans, which were still being formulated ahead of a White House Rose Garden announcement ceremony scheduled for 4 p.m. Eastern Time (2000 GMT).

U.S. stock indexes opened sharply lower on Wednesday, extending a selloff that has erased nearly $5 trillion of value since February.

The new duties are due to take effect immediately after Trump announces them, while a separate 25% global tariff on auto imports will take effect on April 3. 

As of Wednesday morning, the White House had not published an official notice of either set of tariffs, as it is required to do before they take effect. The administration also has declined to comment on reports that Trump was considering a 20% universal tariff. 

“IT’S LIBERATION DAY IN AMERICA!” Trump wrote on his social media platform. 
Trading partners are expected to respond with actions of their own. 

“It will be negative the world over and the density and the durability of the impact will vary depending on the scope, on the products targeted, on how long it lasts, on whether or not there are negotiations,” European Central Bank President Christine Lagarde said on Ireland’s Newstalk radio.

Trump, who once called the word tariff the “most beautiful word in the dictionary,” has said his reciprocal plans would match U.S. rates with higher levels charged by other countries and counteract their non-tariff barriers that he says disadvantage U.S. exports.

Trump’s trade adviser Peter Navarro said the auto tariffs would return strategically vital manufacturing capabilities to the United States. “This isn’t protectionism. It’s restoration,” he wrote in USA Today.

Outside economists have warned that tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average U.S. family by thousands of dollars. Businesses have complained that Trump’s barrage of threats has made it difficult to plan their operations. 

“I can’t recall a situation where the stakes were this high and yet the outcome was so unpredictable,” said Steve Sosnick, chief strategist at Interactive Brokers. “The devil is going to be in the details and nobody knows the details.”

Across sectors, from cars to ocean freight shipping, luxury goods and beyond, business leaders waited to see what would hit them. 

“You cannot make important decisions on your supply chain when the rules of the game keep changing,” said Peter Sand, chief analyst at freight pricing platform Xeneta.

Italian Prime Minister Giorgia Meloni, who has been careful to avoid criticising Trump, warned tariffs would hit Italian companies hard and also be “unfair” on American consumers.

“This is the reason why I remain convinced that we must work to avert a trade war,” she said.
France expected a “pretty powerful” hit that could see tariffs in the range of 20-25%.

In just over 10 weeks since taking office, Trump has imposed new 20% duties on all imports from China over fentanyl and fully restored 25% duties on steel and aluminum, extending these to nearly $150 billion worth of downstream products. A month-long reprieve for most Canadian and Mexican goods from his 25% fentanyl-related tariffs is due to expire on Wednesday.

Administration officials have said that all of Trump’s tariffs stack atop prior rates, so a Mexican-built car previously charged 2.5% to enter the U.S. would be subject to both the fentanyl tariffs and the autos sectoral tariffs, for a 52.5% tariff rate — plus any reciprocal tariff Trump may impose on Mexican goods.

Growing uncertainty over the duties is eroding investor, consumer and business confidence. Global stocks retreated on Wednesday, while safe-haven gold held near record highs. 

The dollar and other currencies held in tight ranges on Wednesday as traders awaited details of Trump’s plans. Tariff concerns have already slowed manufacturing activity across the globe, while also spurring sales of autos and other imported products as consumers rush to make purchases before prices rise.

Trading partners including Australia, the European Union, Canada and Mexico have vowed to respond with retaliatory tariffs and other countermeasures, even as some have sought to negotiate with the White House.

Trump has argued that American workers and manufacturers have been hurt for decades by free-trade deals that have lowered barriers to global commerce and fueled the growth of a $3 trillion U.S. market for imported goods, leading to a goods trade deficit that exceeds $1.2 trillion.

But a 20% tariff on top of those already imposed would cost the average U.S. household at least $3,400, according to the Yale University Budget Lab.