Washington, DC [US], March 20 (ANI): White House officials are preparing to impose sweeping new tariffs on most imports by April 2, escalating US President Donald Trump's ongoing trade war with an unprecedented move that he has called it 'Liberation Day,' the Washington Post reported.

Through his first two months back in office, Trump has already raised tariffs on an estimated USD 800 billion in imports, targeting key trade partners like China, Mexico, and Canada. The aggressive tariffs have sent shockwaves through global markets, causing volatility on Wall Street, prompting fears of a recession, and triggering retaliation from other nations.

Despite mounting economic concerns, senior administration officials are now working to significantly expand the scope of these tariffs, preparing duties on what sources familiar with the discussions describe as 'trillions' of dollars in imports. This radical move has alarmed economists, unsettled congressional Republicans, and left even White House allies questioning the feasibility of implementing such an expansive trade tax regime.

Trump has framed the upcoming tariffs as a necessary step to force companies to bring manufacturing back to the United States and to extract economic concessions from foreign governments. Speaking to reporters on Monday, he reiterated his belief that the US has been exploited by unfair trade policies.

'It's a liberation day for our country because we're going to be getting back a lot of the wealth that we so foolishly gave up to other countries, including friend and foe,' Trump said.

Dubbed the 'reciprocal tariff' plan, Trump's strategy aims to impose duties on foreign goods equal to the tariffs that other countries impose on American products. Trump frequently cited this concept on the campaign trail, arguing that other nations take advantage of the US by imposing much higher trade barriers.

'If India, China, or any other country hits us with a 100 or 200 per cent tariff on American-made goods, we will hit them with the same exact tariff,' Trump said in a campaign video. 'In other words, 100 per cent is 100 per cent. If they charge us, we charge them--an eye for an eye, a tariff for a tariff, same exact amount.'

While Trump's argument resonates with his supporters, economic experts have warned that most advanced economies already have similar tariff profiles. According to World Trade Organisation data, the average US tariff is 2.2 per cent, compared to Japan's 1.9 per cent and the European Union's 2.7 per cent. Matching foreign tariff rates could send US import duties soaring to levels not seen since the early 1930s, potentially reaching an average of 20 per cent, according to Edward Gresser, a trade policy expert.

The potential consequences of such a shift have sparked fierce debate within the administration. Vice President JD Vance, Commerce Secretary Howard Lutnick, White House trade adviser Peter Navarro, and Treasury Secretary Scott Bessent are all engaged in discussions about how to implement Trump's vision while minimising economic fallout, reported the Washington Post.

'The last two months have already hurt American businesses and consumers, but the April 2 deadline seriously could make all of that look like a tempest in a teapot,' said Joseph Politano, an economic policy analyst at Apricitas Economics. 'We don't know exactly what they're going to do, but from what they're saying, it sounds functionally like new tariffs on all US imports.'

Implementing such a sweeping tariff regime poses major logistical and legal challenges. The Office of the US Trade Representative (USTR) is responsible for carrying out the plan, but sources inside the administration have questioned whether the agency has the resources to calibrate precise retaliatory tariffs for each trading partner.

Administration officials have debated how to categorise countries for tariff assessments. One proposal involved sorting trade partners into three groups--high, medium, or low tariffs--but this idea was ultimately discarded in favour of setting unique rates for each country. This individualised approach, however, adds another layer of complexity to an already daunting task.

Trump has some legal authority to impose tariffs immediately under existing trade laws, particularly against China, thanks to a 2018 investigation into Chinese trade practices. Additionally, a 1930 law allows the President to impose tariffs of up to 50 per cent on countries found to be discriminating against US goods. However, imposing widespread tariffs beyond these constraints could require congressional approval--something the administration may struggle to secure.

To ensure legal viability, US Trade Representative Jamieson Greer and Secretary of State Marco Rubio are working to craft the policy in a way that can survive potential legal challenges. Meanwhile, Peter Navarro is pushing for rapid implementation despite concerns from more cautious officials.

Even before the full details of the plan are unveiled, global markets and key industries are bracing for impact. The S&P 500 has dropped more than 8 per cent over the past month, while the Nasdaq has plunged nearly 13 per cent. Economic indicators are flashing warning signs, with a widely watched consumer confidence index hitting its lowest level since November 2022.

Manufacturing output in February hit its highest level in two years, but analysts believe this is a short-term reaction to businesses scrambling to stockpile materials before tariffs make imports more expensive. 'Manufacturers raced to produce goods in February before large tariffs on imports could be imposed, as well as to meet a temporary tariff-induced spike in orders,' wrote Samuel Tombs, chief US economist for Pantheon Macroeconomics.

Meanwhile, industries that face foreign competition are lobbying the administration for protective tariffs. The National Christmas Tree Association is seeking tariffs on artificial Christmas trees, arguing that cheap Chinese imports are undercutting American growers. Similarly, the Southern Shrimp Alliance is calling for duties on imported frozen shrimp, which has seen domestic prices plummet from USD 3 per pound in the 1980s to about USD 1.25 at present.

Other industries are also seeking relief.

JM Smucker Co. Vice President Michael Madriaga has complained about European Union tariffs of up to 24 per cent on US jam and jelly exports, which he says have stifled American sales in Europe while allowing nearly USD 238 million worth of similar European products to flood the US market, the Washington Post reported.

Despite the pushback, the administration is standing firm. Treasury Secretary Scott Bessent said in a Fox Business interview that the new tariff plan will factor in currency manipulation, labour conditions, and other economic policies of trading partners. 'Each country will get a number, and that will determine their tariff rate,' Bessent said, adding that he expects many countries to lower their own tariffs before the US duties take effect.

White House spokesman Kush Desai insisted that administration officials are aligned on the need for bold action.

'Although the final reciprocal tariff plan for April 2 has yet to be unveiled by President Trump, every member of the Trump administration is aligned on finally levelling the playing field for American industries and workers,' Desai said. 'President Trump has assembled the best and brightest trade team in modern American history to reignite American greatness, and they are hard at work following the same playbook.'

As the April 2 deadline approaches, businesses, investors, and policymakers are bracing for what could be the most significant shift in US trade policy in decades. While Trump and his advisers remain steadfast in their belief that tariffs will ultimately benefit American workers, the immediate impact has been uncertainty, market turbulence, and growing fears of economic disruption. (ANI)