Trump’s 20% ‘Liberation Day’ Tariffs Spark Fears of $3 Trillion Trade War

The world is on edge as the U.S. President Donald Trump prepares to unveil sweeping tariffs of around 20% on nearly $3 trillion worth of imported goods, marking April 2 as "Liberation Day." The move threatens to disrupt global trade norms that have stood for over half a century, with businesses, consumers, and investors fearing the fallout of an all-out trade war.

According to The Washington Post, White House aides have drafted plans to impose tariffs on most imported goods, targeting nations accused of treating American products and workers unfairly. While no final decision has been made, insiders reveal that the administration is also exploring the possibility of using the anticipated surge in import revenue for a tax dividend or refund.

Trump’s aggressive stance has already sent shockwaves through global markets. In just over a month, U.S. stocks have lost nearly $5 trillion in value, as rattled investors brace for economic turmoil. The tariffs are expected to drive up prices, stoking fears of runaway inflation and derailing economic growth. A series of business and consumer surveys have pointed to sagging confidence, as uncertainty looms over the U.S. economy, which had been growing at above-trend rates.

The ripple effects are already being felt across Asia and Europe. Business sentiment in Asia has soured, with factory activity weakening amid concerns over the deepening tariff war. In Europe, a fledgling manufacturing recovery is clouded by fears that recent upticks in output may be short-lived, driven by buyers rushing to place orders ahead of Trump’s levies. “A backlash is to be expected in the coming months,” warned Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

As the April 2 deadline approaches, experts warn of a volatile global market and potential economic shocks. Trump’s unpredictable approach to trade policy has left businesses scrambling for contingency plans. The world watches with bated breath, knowing "Liberation Day" could usher in a new era of economic turbulence. The stakes are higher than ever, and the fallout could reshape the global economy for years to come.