President Donald Trump has vowed to issue a new tariff round on April 2, presenting it as a turn point for the economy a few weeks after a series of previous tasks the market is diligent and inciting concerns of the recession.
Trump has repeatedly called April 2 as “Liberation Day,” said a broad reciprocal tariff board will recall US trade relations.
Trump’s plan for the reciprocity rate next week, however, is expected to be narrower than previously vowing, even though the plan is still in discussion, the source told ABC News this week.
News about the potentially softer approach for the coming rates to collect US shares earlier this week, restoring some of the losses suffered previously in March.
While the main details are still unknown, new tasks will increase the global trade war, raise prices for various consumer goods and risk economic slowders, experts told ABC News.
“This will certainly be an escalation,” Mary Lovely, a senior at the Peterson Institute for the International Economy who studied trade policies, told ABC News. “We know the direction of the trip, otherwise this will go.”
This is the meaning of the latest rotation rates for prices and economics, according to experts:
Will the tariff on April 2 increase the price?
In setting tariffs for April 2, the US will target countries that have a large trade imbalance with the US, said the source.
“This is 15% of countries, but this is a large amount of our trade volume,” said Minister of Finance Scott Bessent last week, describing the countries as “dirty 15.”
Last year, according to federal census data, the US has the largest trade deficit with China, the European Union, Mexico, Vietnam, Taiwan, Japan, South Korea, Canada and India, among other countries.
Reciprocal rates can increase the price of imported goods from these countries, because importers usually deliver part of the tax burden to consumers.
Rates can increase prices for consumer furniture and electronics from Vietnam, fresh fruits and vegetables from Mexico, and cars from South Korea, experts told ABC News.
“This will mean the price will eventually rise,” Jason Miller, a professor of supply chain management at Michigan State University, told ABC News.
The price increase scale will likely depend on the tariff set by the Trump administration, which is still unclear, experts said.
President Donald Trump spoke during a meeting with the US Ambassador in the White House cabinet room in Washington, March 25, 2025.
Mandel and/AFP
Speaking at the White House on Monday, Trump said that the reciprocal rate could fail to reach the targeted level by the targeted countries on US goods.
“I can give many countries,” Trump told reporters at the oval office. “I am ashamed to collect them what they have charged.”
Kyle Handley, an economic professor at the University of California, San Diego, said he hoped that consumer prices would rise enough for consumers to identify these changes.
“Depending on what tariffs they do, it can be very large,” Handley said. “This will be an increase in import prices that are not trivial. People will pay attention.”
What does the tariff mean on April 2 to the economy?
Experts told ABC News that new tariffs will put pressure on US economic growth, because additional tax burden to import business and uncertainty about additional tasks can prevent private sector investment.
“There are many uncertainty about tariffs that are very likely to have a frozen company in place because they are waiting to evaluate and see what happens,” Miller said.
The towering tariff is also at risk of anxiety among buyers, threatening to damage the main machine of the US economy, some experts said. Consumer attitudes worsen more than expected in March, down to the lowest level since 2021, a conference council survey on Tuesday showed.
Consumer expenditure, which contributes about two -thirds of US economic activities, can weaken if the spending of acid sentiment, Bet Kenwell, US investment analyst in Ethoro, told ABC News in a statement.
However, with a few main steps, the economy remains in solid conditions. This new job report shows a stable recruitment last month and a low historical unemployment rate. Inflation stood far below the peak achieved in 2022, although the price increase registered almost the percentage of points was higher than the Fed goal of 2%.
However, recession fears increased in Wall Street because business and consumers faced a trade war. Goldman Sachs earlier this month climbed a recession opportunity from 15% to 20%. Moody analysis set a recession opportunity for next year by 35%.
“This tariff will be very detrimental to economic performance and business growth,” Handley said. “Maybe it doesn’t take long for us to start seeing some of these effects.”
ABC News’ Selina Wang contributed to this report.