New US tariffs may add pressure to global trade, with economists cautioning that Canada faces recession risks
“It’s time for a president to take historic change to do what’s right for the American people,” White House press secretary Karoline Leavitt said Monday, previewing President Donald Trump’s upcoming announcement of a new reciprocal tariff policy.
Trump is set to unveil the plan Wednesday at the White House Rose Garden, with cabinet members expected to attend.
According to Leavitt, the policy will focus on “country-based” tariffs, though details regarding specific nations and industries remain undisclosed. Sectoral tariffs are also under consideration but will not be addressed at the event.
“The president will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decades,” said Leavitt.
Speaking to reporters Sunday, Trump said the reciprocal tariffs would apply to “all countries,” countering speculation that the initial measures might be narrower in scope.
Leavitt pointed to tariffs imposed by the European Union, Japan, India, and Canada as examples of trade policies that have affected US exports. While she did not confirm whether these countries would be targeted, her remarks suggest they could be among those impacted.
“This makes it virtually impossible for American products to be imported into these markets, and it has put a lot of Americans out of business and out of work over the past several decades,” Leavitt said.
The Financial Post reports that Trump’s tariff strategy follows earlier duties placed on Canada, Mexico, and China—three of the United States’ largest trading partners—as well as on products such as automobiles, steel, and aluminum. The administration is considering tariffs on copper, pharmaceuticals, semiconductors, and lumber in the coming weeks.
Concerns about the economic consequences of new trade barriers have contributed to volatility in financial markets, with a prolonged selloff on Wall Street continuing into Monday. The Financial Post has noted that uncertainty surrounding the administration’s trade policies has led businesses to delay investment decisions.
Economic analysts are also weighing the potential impact beyond the United States. In an interview with the Financial Post, Desjardins Group chief economist Jimmy Jean said Canada’s reliance on trade makes it particularly vulnerable to the effects of new tariffs. He said that if the measures announced on April 2 proceed as expected, “it is going to be very hard to avoid a recession” in Canada, citing potential job losses, reduced business investment, and weakened economic growth.
"We think the unemployment rate is likely to go up. You're seeing businesses hiring intentions go down. Investment is put on hold," Jean told Financial Post.
Leavitt, responding to concerns about market reactions, said financial institutions would adapt, as they did during Trump’s first term.
