Trump's 'Liberation Day' today: How India, other countries are preparing
What's the story
As United States President Donald Trump gets ready to announce his much-anticipated "reciprocal tariffs" on Wednesday, countries and markets alike are gearing up for the impact.
The White House hasn't revealed anything about the size and the scope of these trade barriers, but they are expected to impact all US trade partners.
White House spokeswoman Karoline Leavitt said, "The president will be announcing a tariff plan that will roll back the unfair trade practices."
Tariff details
Immediate effect on nations with high duties
Leavitt elaborated that new tariffs on countries levying "high" duties on US goods will go into effect immediately after the announcement.
A 25% tariff on auto imports will go into effect on Thursday.
Amid uncertainty over Trump's tariff war, trade partners including India are taking a wait-and-watch approach.
According to HT, Indian authorities have mapped out four different scenarios and the potential repercussions of the latest tariffs, and they remain optimistic about the steady progress achieved in trade negotiations.
Global response
Allies and trade partners respond to Trump's tariff threats
Canada has vowed to retaliate with its own tariffs, with its Prime Minister Mark Carney saying it would "fight unjustified trade actions."
The European Union has a "strong plan" to retaliate against the tariffs but would prefer to negotiate, the head of the European Commission, Ursula von der Leyen, said.
"Europe holds a lot of cards. From trade to technology to the size of our market, But this strength is also built on...readiness to take firm countermeasures if necessary."
Others
China, Japan, and South Korea agree to respond jointly
China, Japan, and South Korea have also agreed to respond jointly to US tariffs, according to a social media account affiliated with Chinese state broadcaster CCTV.
According to Reuters, the comments came after they held their first economic dialogue in five years.
Japan and South Korea want to import semiconductor raw materials from China, and China is interested in buying chip products from them.
All three parties agreed to boost supply chain coordination and increase dialogue on export controls.
Trade negotiations
India prepares for possible impact of Trump's tariffs
Trump has already hiked tariffs on Chinese imports, steel, aluminum, and certain Canadian and Mexican goods. Higher car levies are expected this week.
Analysts have floated several prospective tariff rates, but the White House has not stated how high they could go.
On the campaign trail last year, Trump advocated for a 10% duty on all imports, sometimes suggesting that it could be 20% or even 60% on imports from China.
Once elected, he introduced the idea of "reciprocal" tariffs.