Global markets are focused on US President Donald Trump’s new customs duties decision. White House Spokesperson Karoline Leavitt stated that Trump will announce a tariff plan to reverse unfair trade practices on April 2. The announcement of reciprocal tariffs and the meeting at which cabinet members will participate will be held at the White House. Leavitt said, “The President will announce a tariff plan that will reverse unfair trade practices that have been robbing our country for decades. He is doing this to protect the interests of American workers.”

NEW TAXES TO TAKE EFFECT IMMEDIATELY The White House did not disclose details regarding the scope of the tariffs. It was noted that the new customs duties will come into effect quickly after being announced. Leavitt pointed out that the European Union (EU) imposed a 50% customs duty on US dairy products, Japan a 700% duty on US rice, India a 100% duty on US agricultural products, and Canada nearly a 300% duty on US butter and cheese. President Trump had stated in a Sunday announcement that the tariffs would cover all countries.

CLAIM OF A 20% ADDITIONAL TAX In a news article published today, The Washington Post reported that White House officials have prepared a proposal to apply approximately 20% customs duty to most of the US imports.

The article noted that various options are on the table and a final decision has not been made.

INCREASED CONCERNS ABOUT INFLATION There are concerns that tariffs could fuel inflationary pressures and harm economic growth.

Analysts suggest that expectations for interest rate cuts in monetary policy could be postponed due to inflation concerns.