Trump's Trade Tariff Shake-Up Sparks Global Tension

President Donald Trump is set to unveil new reciprocal tariffs, disrupting established global trade rules. These measures, aimed at equalizing U.S. tariffs with those of other countries, are likely to provoke widespread retaliation. Uncertainty surrounding the tariffs is affecting investor confidence and could negatively impact the economy.

President Donald Trump is poised to announce sweeping new reciprocal tariffs on global trade partners, a move expected to significantly disrupt decades of rules-based trade. Dubbed as "Liberation Day," details of the new tariffs are being finalized, with an official announcement slated for the White House Rose Garden.

The new duties will take immediate effect following the announcement, according to White House spokesperson Karoline Leavitt. Trump's proposals are intended to bring U.S. tariffs in line with those of other countries by imposing a baseline 25% global tariff on auto imports starting April 3.

Economists warn that such hefty tariffs could push up prices and slow the economy, with the Federal Reserve Bank of Atlanta indicating potential price hikes and reduced hiring. Global trading partners, including the European Union, Canada, and Mexico, are planning retaliatory measures in response to the anticipated U.S. tariffs.

(With inputs from agencies.)