Daijiworld Media Network – Washington

Washington, Apr 2: US President Donald Trump is set to introduce the largest trade barriers in generations on Wednesday, dubbing it ‘Liberation Day.’ The much-anticipated announcement, expected at 4 pm in the White House Rose Garden, could reshape global trade dynamics, though uncertainty looms over its full economic impact.

Trump has hinted at imposing tariffs on imported automobiles, auto parts, pharmaceuticals, and computer chips, with duties expected to be reciprocal to those levied by other nations. However, last-minute debates within his administration have fueled uncertainty, unsettling businesses and financial markets.

While Trump campaigned on promises of economic revival, his push for tariffs has left business leaders and economists both surprised and concerned. Michael Strain, an economic policy expert, noted a shift from traditional Republican policies to a more nationalist ‘MAGA’ approach, disappointing many in the business sector.

Stock markets have reacted negatively, and the Federal Reserve has preemptively raised inflation forecasts, anticipating higher costs passed on to consumers. The University of Michigan's consumer confidence survey recorded a sharp rise in inflation expectations, with two-thirds of respondents predicting higher unemployment—the most pessimistic outlook since 2009.

Internationally, countries like Vietnam and Israel have preemptively adjusted their trade policies, while European leaders are pushing for negotiations. Despite global opposition, Trump remains steadfast, arguing that the tariffs will protect American jobs and industries.

Trump has claimed early success, asserting that US companies have pledged more investments in the past two months than during President Joe Biden's entire term. However, analysts question the extent of new commitments, suggesting many were already in progress.

With inflation-adjusted wages rising over the past decade and US manufacturing exports reaching record highs, critics argue Trump's trade strategy is rooted in outdated economic views. Nonetheless, his administration remains committed to its nationalist approach, prepared to enforce sweeping tariffs regardless of the potential economic consequences.