US plans immediate reciprocal tariffs on April 2; sector-specific levies not expected that day
The US is set to impose reciprocal tariffs on April 2, a move US President Donald Trump has labelled “Liberation Day.”
According to CNBC, Trump said the plan would reflect duties placed on US goods by other countries, adding that while “the word flexibility is an important word,” once exemptions are granted to one country, “you have to do that for all.”
As reported by The Wall Street Journal, the White House is narrowing its original approach, now focusing on countries with major trade imbalances with the US.
This group—referred to by US Treasury Secretary Scott Bessent as the “dirty 15”—makes up about 15 percent of US trade partners but represents a significant share of import volume.
Countries expected to be impacted include Canada, Mexico, China, Japan, India, South Korea, the European Union, Brazil, Vietnam, Russia, and Australia.
Trump’s reciprocal tariff plan replaces an earlier idea for a global, across-the-board rate. According to BNN Bloomberg, this more targeted approach still represents a wider effort than what was seen during Trump’s first term.
While Trump has promised to pair the April 2 rollout with sector-specific tariffs on autos, pharmaceuticals, semiconductor chips, and lumber, officials told BNN Bloomberg that such measures are unlikely to be announced at the event.
The administration had previously considered a three-tiered system, grouping countries into high, medium, and low tariff categories, but instead opted for country-specific rates.
According to The Wall Street Journal, the shift came after internal debate, with the administration deciding to abandon broader sector tariffs for now and focus on nations with persistent imbalances.
Trump has stated that tariffs will go into effect immediately. Officials told BNN Bloomberg that the plan could be enacted using the president’s emergency economic powers, though final decisions remain pending.
The aim, according to CNBC, is to impose tariffs not only on countries with direct duties against the US but also on those using non-tariff barriers such as value-added taxes.
The plan follows weeks of discussions between the White House and both foreign governments and industry leaders.
Officials from Canada and Mexico told The Wall Street Journal they were informed there would be no way to avoid reciprocal tariffs ahead of April 2.
Lobbyists and executives from Fortune 500 companies have been contacting the White House seeking exemptions, though industry sources said they have been told that carve-outs would be limited.
Trump told oil executives he was not inclined to grant exemptions, a sentiment echoed by US Commerce Secretary Howard Lutnick and US Trade Representative Jameson Greer. However, a White House official disputed that tariffs were even discussed at the meeting.
Trump has maintained that tariffs are a key revenue tool. As per BNN Bloomberg, Trump said the April 2 tariffs could bring in “tens of billions,” while an aide suggested the total could reach trillions over a decade.
Stephen Miran, chair of the Council of Economic Advisers, told Fox Business that tariff revenue could help fund tax reductions.
Yet economists have questioned the broader impact. A 2023 survey by the Peterson Institute for International Economics, cited by BNN Bloomberg, found that customs revenue from Chinese tariffs peaked in 2022 before falling sharply in 2023.
Despite earlier pauses, Trump has not ruled out renewing tariffs on Canada and Mexico, which were previously justified by the US for alleged fentanyl trafficking.
According to The Wall Street Journal, those tariffs could be replaced by new reciprocal rates or lifted entirely.
US Press Secretary Karoline Leavitt told BNN Bloomberg that “big tariffs” will be announced by Trump himself.
National Economic Council Director Kevin Hassett told Fox Business that markets are overestimating the scope of the measures, explaining, “it’s not everybody that cheats us on trade, it’s just a few countries.”
According to CNBC, Trump continues to emphasise the tariffs’ reciprocal nature, stating: “There’ll be flexibility, but basically it’s reciprocal.”
