US President Donald Trump is set to announce a number of massive tariffs on April 2 as part of his ambitious economic agenda to rewire the United States trading relationships with its allies and adversaries alike, while shaking up the global economy in the process.

Trump and his administration have promoted the tariff announcement as Liberation Day for the United States as they look to reduce the countrys dependence on foreign goods as part of a broader policy push intended to resuscitate US manufacturing, cut the US trade deficit, and help reduce the national debt.

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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, White House press secretary Karoline Leavitt told reporters. Hes doing this in the best interest of the American worker.

Trump will deliver remarks on April 2 at what is being billed as a Make America Wealthy Again Event in the White House Rose Garden, the White House said on April 1.

But its unclear ahead of the announcement what exactly will go into effect and if there will be exceptions, delays, or rollbacks on tariffs.

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Leavitt said that its ultimately up to Trump to decide what tariffs to impose, and various scenarios have been floated by the US president and his advisers in the weeks and days ahead of the announcement.

Those scenarios range from across-the-board tariffs of up to 20 percent that would affect virtually every country doing business with the United States to the so-called reciprocal tariff approach, where Washington matches dollar for dollar other countries levies placed on US products.

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Theenactment of postponed 25 percent tariffson Mexico and Canada, as well as tariffs on lumber, copper, pharmaceuticals, and microchips could also be on the table.

Trump has already announced 25 percent tariffs on auto imports that are set to go into effect on April 3.

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Which approach Trump adopts for tariffs may reveal more about how he and his administration intend to use the financial measures.

The Trump administration wants to both raise revenue with tariffs -- which are import duties on goods coming into the United States -- and use them as leverage to get other nations to lower their own duties, or make other policy changes, such as combating migration and drug trafficking.

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But some economists and market analysts have noted that if the tariffs are subject to negotiation and could be lowered over time, this would limit how much revenue they could ultimately generate.

Other concerns have also been raised about the effects that the tariffs could have on rising prices in the United States and the broader economic fallout.

Trumps tariffs and his threats to impose more have already sent US stocks tumbling and sparked fears that the countrys economy could go into a recession. The S&P 500 -- the market index tracking the performance of 500 leading companies listed on stock exchanges in the United States -- is on track for its biggest quarterly loss since the fall of 2022.

What Will Be The Global Impact Of US Auto Tariffs?

The shock from the auto tariffs could be large and leave lasting fallout across Europe and Asia.

In Asia, the measures could have major impacts on the South Korean and Japanese economies, which rely heavily on their auto sectors. In Europe,the fallout couldhitGermany and neighboring countries also heavily integrated into the European Unions auto manufacturing supply chain.

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Slovakia, which relies on the auto industry as a driving force for its economy, would be among the top three most affected in the EU, Slovak Economy Minister Denisa Sakova said on March 28.

According to estimates compiled by Goldman Sachs, almost half of the 16 million cars sold in the United States last year were imported with a total value exceeding $330 billion.

Some studies show that the measures may help generate the policy outcomes touted by the Trump administration.

Car manufacturers, including South Koreas Hyundai and Kia, have already announced plans to boost production in the United States.

Chart: Average U.S. Tariffs, 1891-2021

The Yale Budget Lab, a nonpartisan research center associated with Yale University,also estimatedthat Trumps new auto tariffs could raise $600 billion to $650 billion in revenue from 2026 to 2035.

But that same study showed that the levies would see US vehicle prices rise by 13.5 percent on average, the equivalent of an additional $6,400 for the price of an average new 2024 car.

Trumps 25 percent tariffs on steel and aluminum, which kicked in on March 12, are also forecast to increase the prices of conventional engine vehicles by $250 to $800 and those of electric vehicles (EVs) by $2,500 or more,accordingto the Anderson Economic Group (AEG), a financial consultancy.

Will New Tariffs Ramp Up A Global Trade War?

Trumps tariffs have already been met with retaliatory measures, and the April 2 announcement could bring a new round to further ignite a global trade war.

Both Canada and China have imposed retaliatory tariffs on a range of US products, while theEU has saidit will impose 50 percent on American whiskey, motorcycles, and motorboats, as well as additional tariffs beginning in mid-April on chewing gum, poultry, soybeans, and other goods.

The 27-country bloc has also threatened, but not enacted, a 25 percent tariff on all US imports.

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European Commission President Ursula von der Leyensaid on April 1that Brussels has a strong plan to counter incoming US tariffs, which couldreportedlygo after US banks and major tech companies.

Trade tensionsbetween Beijing and Washington, who have exchanged tariffs since February, are also poised to grow further following Trumps Liberation Day announcement.

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However, the US president has also floated the idea of cutting tariffs on Chinese goods to secure a deal with TikToks Chinese parent company, ByteDance, as the April 5 deadline to sell the app approaches.

Under US law, ByteDance was required to divest its ownership of TikTok by January 19 or risk a ban. However, Trump granted a 75-day grace period.