What to know about Trump’s Liberation Day

Tomorrow is Liberation day in Donald Trump's America.

Dubbing April 2 as "Liberation Day," Trump has vowed to introduce a series of import taxes he claims will liberate the U.S. from dependence on foreign goods. He plans to enforce "reciprocal" tariffs that mirror what other nations impose on American products.

Details about the implementation of these tariffs remain unclear. On Monday, White House press secretary Karoline Leavitt announced that Trump would reveal his strategy for reciprocal tariffs on almost all U.S. trade partners this Wednesday, but she left the specifics for the president to disclose.

Trump insists that tariffs safeguard American industries from overseas competition, generate revenue for the government, and strengthen the U.S.'s bargaining position.

However, economists warn that widespread tariffs at the levels Trump suggests could have adverse effects.

The introduction of tariffs typically results in increased prices for consumers, while also impacting businesses globally due to higher costs and potentially lower sales.

The existing import taxes, combined with the uncertainty surrounding future trade actions and possible retaliations, have already affected financial markets, reduced consumer confidence, and raised questions that could delay hiring and investment, the Associated Press reports.

Here's what you need to know:

What will happen on Liberation Day?

The specifics of Trump's plans remain unclear. The reciprocal tariffs could be implemented as product-by-product duties or broader "averages" applied to all goods from each country, or possibly something else entirely.

The rates may reflect the tariffs charged by other countries, as well as their value-added taxes and subsidies to domestic companies.

White House trade adviser Peter Navarro stated on "Fox News Sunday" that the tariffs could generate $600 billion annually, implying an average rate of 20%.

Which of Trump's tariffs are about to kick in?

Trump has announced he will impose a 25% tariff on all imports from any country that purchases oil or gas from Venezuela, including the U.S. itself, starting Wednesday - along with imposing new tariffs on the South American country.

His 25% tariffs on auto imports will begin being collected Thursday, with taxes on fully-imported cars starting at midnight. The tariffs are set to expand to applicable auto parts in the following weeks, through May 3.

The White House anticipates raising $100 billion in revenue annually from these new duties.

Which tariffs have already been implemented?

Trump enforced a 10% tariff on all Chinese imports starting Feb. 4, a tax he later increased to 20% from March 4 onwards.

In response, China retaliated with its own tariffs covering a variety of U.S. goods, including a 15% tariff on coal and liquefied natural gas products and a 10% tariff on U.S. crude oil that came into effect on Feb 10.

China also introduced tariffs of up to 15% on key U.S. agricultural exports beginning March 10.

Earlier this month, Trump's expanded steel and aluminum tariffs also came into effect.

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Both metals are now taxed at 25% universally - with Trump's directive to eliminate steel exemptions and increase aluminum's levy from his previously imposed 2018 import taxes taking effect on March 12.

Canada and Mexico, America's two biggest trading partners, have also been hit with hefty tariffs.

Earlier this month, Trump put into action a partial, month-long postponement of his 25% tariffs on both countries - delaying taxes for auto-related imports as well as goods that comply with the 2020 US-Mexico-Canada Agreement until early April.

Could we see more tariffs in the future?

Further tariffs from Trump are likely, with the president also threatening import taxes on items such as copper, lumber, pharmaceutical drugs, and computer chips.

Numerous countries have pledged retaliatory measures - if they haven't already enforced them, like Canada.

Trump has stated he won't negotiate with other nations regarding Wednesday's tariffs until after they're implemented, although he has declared his 25% taxes on auto imports will be permanent.