Over the weekend, President Donald Trump announced plans to impose tariffs on foreign countries starting April 2. He aims to target about 15% of nations that have ongoing trade imbalances with the United States. Trump expressed his enthusiasm on Truth Social, declaring April 2 as “Liberation Day in America.” He stated that the U.S. has been taken advantage of for decades and it’s time to reclaim respect and financial benefits.
The news of these narrower tariffs had a positive impact on the stock market. On Monday, the Dow Jones Industrial Average surged by 600 points, while the S&P 500 rose by 1.76% and the Nasdaq increased by 2.27%. Kevin Hassett, the director of Trump’s National Economic Council, explained that the market was expecting broad tariffs on all countries. However, he clarified that only a few nations would be targeted for tariffs due to their unfair trade practices.
While specific sectors affected by the tariffs will not be revealed on April 2, sources suggest that the targeted countries will likely include those mentioned in a recent notice from the U.S. trade representative. This list includes major economies such as China, Canada, and members of the G-20.
The announcement comes at a time when consumer confidence is on the decline. The Conference Board reported that its Consumer Confidence Index dropped by 7.2 points in March, marking the fourth consecutive monthly decline. The current index stands at 92.9, which is below the stable range seen since 2022. The expectations for future economic conditions have also fallen significantly, indicating a potential recession ahead.
As the administration prepares for these changes, many are watching closely to see how the tariffs will affect both the economy and international relations.