After stating his preference for a “big and simple” approach, Trump has reportedly urged his advisors to impose a global tariff of up to 20%, extending higher rates to more countries.
A prior report suggested that Trump was considering implementing more drastic measures to change the U.S. economy.
In response, his administration is rushing to finalize the details of its new tariff agenda ahead of its self-imposed deadline on Wednesday, April 2.
Trump views a 20% global tariff as one of the “simple” policies to be put into effect.
Investors braced for potential market turbulence as a critical week for the economy began amid reports that President Donald Trump’s trade war could escalate further.
Discussions on Trump’s tariff policies have intensified since the weekend, raising concerns that new trade measures may worsen economic tensions.
According to sources familiar with the talks, a key debate is whether to reinstate Trump’s campaign pledge to impose a sweeping global tariff affecting nearly all U.S. trading partners or apply customized rates, as he recently suggested.
Trump had previously proposed a 20% global tariff on almost all U.S. trading partners during his campaign, and reports indicate he believes the policy’s simplicity makes exemptions unlikely to dilute its impact.
Fitch Ratings earlier warned that if Trump implements his full trade agenda, the average effective U.S. tariff rate could climb to 18%—the highest in 90 years.
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Goldman Sachs analyst warns that Trump tariffs could drive car prices up by up to $15K.
This suggests the final tariff strategy could be broader than Treasury Secretary Scott Bessent’s “dirty 15” plan, which targeted only the worst 15% of U.S. trading partners.
The White House has not yet responded to requests for comment.
Investors are becoming increasingly uneasy about Trump’s tariff policies.
In February, President Trump signed a presidential memorandum directing a comprehensive plan based on the reciprocal tariff principle to restore fairness in U.S. trade relationships.
According to him, the idea was simple. Specifically, the United States would impose “no more, no less” tariffs on trading partners, just as they do on American goods and services.
As a result, investors were already paying close attention to President Donald Trump’s eagerly anticipated “Liberation Day” tariff announcement on April 2 because important plan details, including a 25% tariff on imported cars, had leaked to the media.
However, the final announcement and whether the message will change over time was unknown due to recent developments.
According to Treasury Secretary Scott Bessent, the new measures would target the “dirty 15” countries with the largest bilateral trade surpluses with the United States. Then, more than two-thirds of U.S. imports could be affected.
Furthermore, this figure excludes continuous tariffs on specific products, like automobiles, semiconductor chips, and pharmaceuticals.
See also
Porsche, Mercedes face $3.7 billion hit from Trump tariffs.
Aside from their global reach, these proposals would be the most important trade restrictions in the post-World War II years.
Evaluating the measures’ effects would be difficult due to the proposals’ complexity and the unavoidable retaliation from the U.S. trading partners.
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