Trump Unveils "Liberation Day" Tariffs, 25% on Cars, 25% on Auto Parts in May

President Trump is set to unveil his long-awaited reciprocal tariff policies, dubbed "Liberation Day" tariffs, from the White House Rose Garden at 4 pm ET. As the event approaches, details remain scarce, with Trump and his team finalizing the plans late into Tuesday evening.

Trump has previously suggested imposing additional tariffs on various goods, including copper, lumber, and pharmaceuticals. The US currently imports a significant portion of its copper, making it a critical component in numerous industries. Trump has also indicated that the new tariffs will match or exceed the foreign levies placed on goods imported from the US.

White House Press Secretary Karoline Leavitt announced that the new policies will take effect immediately upon their unveiling. Additionally, Trump's 25% tariff on imported cars will commence just after midnight tonight, with imported auto parts to be taxed at the same rate starting in May.

The impact of these tariffs extends beyond consumer prices, potentially affecting economic growth. Analysts have warned that tariffs could lead to a slowdown in business expansion and investments, with some predicting an increased likelihood of a recession in the coming year. The Trump administration acknowledges that these policies may cause short-term pain but maintains that they are necessary to revive domestic manufacturing. Critics argue that the transition to onshore operations could take years, with long-term effects on consumer spending and the economy.

The unveiling of the "Liberation Day" tariffs follows the Republican Party's narrow victory in two open Florida House seats during Tuesday's special elections. This outcome may present challenges for the GOP in the upcoming midterms.

As the nation awaits Trump's announcement, several lawmakers on Capitol Hill are already taking defensive measures. Former Senate GOP leader Mitch McConnell has joined Democrat Sen. Tim Kaine in efforts to block Trump's tariffs on Canada. In response, Trump criticized McConnell and other Republicans supporting the resolution, stating that they are "playing with the lives of the American people" as the levies aim to curb fentanyl trafficking.

Other Republicans, including Susan Collins, Lisa Murkowski, and Rand Paul, have also aligned with McConnell in opposing the Canadian tariffs. The political landscape will be closely monitored for any additional Congressional efforts to block tariffs following Trump's announcement.