President Trump has confirmed he’s decided on his “Liberation Day” tariff plan but hasn’t revealed the details ahead of Wednesday’s announcement.
The White House is divided between two approaches:
– A universal 20% tariff on almost all imports
– A “reciprocal” country-by-country approach with different rates that could be negotiated
This split reflects Trump’s competing goals for tariffs:
– Generate revenue (possibly $600 billion annually according to adviser Peter Navarro) to help offset tax cuts
– Use tariffs as leverage to pressure other countries to lower their duties or make policy changes on issues like migration and drug trafficking