Donald Trump is preparing to unveil a sweeping 20 percent global tariff on all imports, which could ignite fears of a worldwide recession.
The 78-year-old returned to the White House in January for a second term, and now, just three months into his presidency, he reportedly intends to propose a plan that would mark one of the most dramatic shifts in US trade policy in decades.
The proposal, which could be announced as early as April 2, a date Trump has dubbed "Liberation Day", calls for broad tariffs on imports from nearly every corner of the globe.
According to the Daily Mail, markets in the Asia-Pacific region were the first to feel the impact.
Japan’s Nikkei plummeted 3.6 percent to hit a six-month low, adding up to a 5.89 percent drop since October. South Korea’s Kospi slipped 2.29 percent, Taiwan’s Taiex dropped nearly 4 percent, and Australia’s S&P/ASX 200 opened down 1.62 percent on Monday.
Behind the scenes, the president has been pushing his team to “be more aggressive” as they finalize the details, per the Wall Street Journal. The current draft would slap a blanket 20 percent tariff on virtually every US trading partner, leaving little room for exemptions.
While Trump first proposed sweeping tariffs during his 2016 campaign, he later shifted to the idea of reciprocal tariffs - charging other nations what they charge the US.
Now, he’s reportedly all-in on a simpler, more dramatic approach. One source told the WSJ he’s demanding “a clean number”, urging his team to keep the plan “big and simple".
That approach, however, is sending shockwaves through the financial world. Barclays's Ajay Rajadhyaksha told Reuters: “For the first time in years, we find ourselves genuinely worried about risk assets.” He warned that “if policy chaos and trade wars worsen much further, a recession is now a realistic risk across major economies.”
JPMorgan chief economist Bruce Kasman echoed the alarm: “Recession risks have become elevated – to a 40 percent probability – on concerns that aggressive US policies hit business and household sentiment.”
Kasman added that the tariffs are likely to drive core inflation above 4 percent in the next quarter, forcing American households to dig deeper into savings to keep up with rising costs.
So far, March has been brutal for US markets. The S&P 500 is down 6.3 percent, its worst showing since September 2022, while the Nasdaq Composite is on track for its steepest monthly drop since December 2022.
Inside the White House, panic is brewing. Despite efforts from Vice President J.D. Vance, Chief of Staff Susie Wiles, and Treasury Secretary Scott Bessent to push for a more targeted, phased rollout, Trump appears undeterred.
He’s reportedly ready to override internal objections, even as top officials admit they don’t know what he’s going to do. “No one knows what the f*** is going on,” one White House ally close told Politico.
While the policy could impact more than $1 trillion in trade, basic details remain unclear - including which countries will be hit, which goods are targeted, and whether any exemptions will apply.
The confusion has only deepened market instability, with the S&P 500 erasing all gains made since November’s Election Day.
Even Trump’s advisers are unsure how to spin the policy. Some aides are hoping the president’s affinity for a strong stock market might make him reconsider. But others say he’s fully prepared for short-term pain.
“The president isn't looking at it like they are,” a source close to the inner circle said. “If the economy tanks, then fine, the economy tanks - because the president truly believes that it will rebound and the countries will give in.”
As inflation fears mount, so do concerns for consumers. Economists warn that higher tariffs will likely lead to price hikes for cars, groceries, housing, and everyday essentials.
The president, however, has dismissed those worries. After imposing a 25 percent tariff on foreign auto imports last week, he told NBC News: “I couldn’t care less. Because if the prices on foreign cars go up, they’re going to buy American cars," adding: "I hope they raise their prices, because if they do, people are going to buy American-made cars. We have plenty.”
Despite telling business leaders and Republican lawmakers that a more stable trade strategy was coming, Trump continues to flip between promising blanket tariffs and offering potential leniency.
“I may give a lot of countries breaks,” he recently said. “We might be even nicer than that.” Yet days earlier, he declared, “every country will be hit with a tariff,” keeping markets and foreign governments on edge.
As one official put it bluntly: “We’re bracing for anything.”