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By Kate Nalepinski
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President Donald Trump has introduced the term "Liberation Day" to describe the rollout of a portion of his new tariff plan on Wednesday, April 2, which aims to reshape United States trade policy.
On Wednesday, Trump is expected to unveil the details of his "reciprocal tariffs" on countries that currently tax U.S. imports and other measures at a press conference in the White House Rose Garden.
The president is scheduled to speak at 4 p.m. ET. White House officials said the most sweeping rewrite of U.S. trade policy will be implemented immediately.
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Why It Matters
While the White House projects the new tariffs will generate $100 billion in annual revenue, industry analysts are concerned that the move could disrupt global supply chains and lead to higher prices for consumers. Trump has said that other countries have taken U.S. resources.
"We're going to charge countries for doing business in our country and taking our jobs, taking our wealth, taking a lot of things that they've been taking over the years," Trump told reporters, according to the Associated Press. "They've taken so much out of our country, friend and foe. And, frankly, friend has been oftentimes much worse than foe."
What is Donald Trump's Liberation Day?
"Liberation Day," as used by Trump, is not a formal policy proposal but a label for what the president claims is necessary to cut economic "exploitation" of the U.S. by foreign powers.
White House press secretary Karoline Leavitt told reporters on Monday that Wednesday is Liberation Day in America. Leavitt said: "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. He's doing this in the best interest of the American worker."
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Tariffs Timeline: What to Know
Trump recently announced 25 percent tariffs on foreign-made vehicles. As previously reported by Newsweek, the move is scheduled to take hold at midnight on Thursday, with the duties on certain car parts coming into effect no later than May 3.
Trump's proposed 25 percent tariffs on all vehicles manufactured outside the U.S. is just one part of his overall push for tariffs. Here's a timeline of what's happened thus far:
- In early February, Trump imposed a 10 percent baseline tariff on Chinese imports. He later bumped the tariffs up to 20 percent after China imposed a 15 percent countertariff.
- On February 4, the 10 percent China tariffs went into effect.
- An executive order signed by Trump implemented a 25 percent additional tariff on Canada and Mexico imports. Canada had responded with retaliatory tariffs. The Canada and Mexico tariffs were paused but kicked in on March 4.
- China and Canada issued additional retaliatory tariffs against the U.S. on March 4. Two days later, in the U.S., adjustments were made to the Canadian and Mexican tariffs to "minimize disruption to the automotive industry."
- The U.S. reinstated 25 percent tariffs on all global steel and aluminum imports on March 12.
- In mid-March, the European Union announced retaliatory tariffs against Trump's steel and aluminum tariffs on approximately $28 billion U.S. exports. Trump then threatened, on Truth Social, a 200 percent tariff on all wine, champagne, and other alcohol products that were "coming out of France and other E.U.-represented countries."
- Canada responded with retaliatory tariffs on the steel and aluminum push.
- On March 24, an executive order imposed 25 percent tariffs on all goods imported into the U.S. from any country that imports Venezuelan oil, whether directly from Venezuela or indirectly through third parties.
- On March 26, Trump signed an executive order imposing 25 percent tariffs on all vehicles manufactured outside the U.S.
Which Car Companies Could Be Impacted?
The 25 percent tariffs on automobiles made outside the U.S. have the potential to impact consumer prices, international trade relationships, and global supply chains in the auto industry, according to experts.
Some car models sold in the U.S. are assembled overseas. According to an analysis by S&P Global Mobility, at least 60 percent of U.S. car sales for companies like Volvo, Hyundai, Mazda and Volkswagen were imported.
According to the American-Made Index, some of the most American-made cars include the Tesla Model Y, Honda Passport, Volkswagen ID.4, Tesla Model S, Honda Odyssey, Honda Ridgeline, Toyota Camry, Jeep Gladiator, Tesla Model X and Lexus TX.
For now, importers of cars covered by the U.S.-Mexico-Canada Agreement can certify which systems used in their vehicles are U.S.-sourced. The 25 percent tariffs will only apply "to the value of their non-U.S. content," per the White House.
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