White House officials have drafted proposals for a broad 20% tariff on most imported goods, according to a report by The Washington Post on Tuesday. The move comes as President Donald Trump gears up to unveil new trade restrictions that have businesses, consumers, and investors on edge over fears of an escalating global trade war.
For weeks, Trump has signaled April 2 as a self-declared “Liberation Day” for launching a fresh wave of tariffs that could dramatically reshape global commerce, though specifics remain scarce. On Sunday, he announced that reciprocal tariffs would hit any nation imposing duties on U.S. products, and the White House reiterated Monday that any country deemed to have treated Americans unfairly should brace for penalties. A separate 25% tariff on auto imports is also slated to take effect on April 3.
The official unveiling of Trump’s tariff plan is set for a Wednesday event in the White House Rose Garden.
According to The Washington Post, aides are weighing a sweeping approach that would impose an across-the-board 20% tariff on imports from nearly every country—an alternative to the more targeted measures previously considered. The administration reportedly believes these tariffs could generate over $6 trillion in revenue, which could then be distributed to Americans as rebates. However, a White House aide dismissed the reports as “mere speculation” ahead of the formal announcement.
Trump has already levied tariffs on aluminum and steel and escalated duties on all Chinese imports, deepening tensions with key trading partners. Canada has vowed retaliatory tariffs, while the European Union and other countries have threatened countermeasures of their own.
The president argues that decades of free-trade agreements have disadvantaged American workers and manufacturers, fueling a ballooning $3 trillion market for imported goods while creating a staggering U.S. trade deficit exceeding $1.2 trillion. He sees aggressive tariffs as a corrective measure—but economists warn that such policies could backfire, driving up consumer prices, stoking inflation, and destabilizing the global economy.
A 20% blanket tariff, layered on top of existing duties, would cost the average U.S. household at least $3,400 annually, according to estimates from the Yale University Budget Lab.
Economic warning signs are already flashing. Business and consumer confidence surveys indicate growing unease over Trump’s unpredictable economic policies, with concerns that the tariffs will fuel inflation and stifle growth. Investor anxiety has triggered a steep sell-off in financial markets, wiping nearly $5 trillion off U.S. stock values since mid-February.
And the fallout isn’t confined to the U.S.
Economic surveys released Tuesday showed that factory activity across Asia is faltering as businesses grapple with weakening global demand and mounting trade uncertainties. In Europe, a nascent manufacturing recovery is overshadowed by fears that companies are simply front-loading orders ahead of Trump’s impending tariff hikes.
With markets rattled and trade partners preparing countermeasures, the world is bracing for what could be the most aggressive U.S. trade policy shift in decades.