The Donald Trump administration has drafted plans to impose a 20% tariff on most imported goods, The Washington Post reported on April 1. This is a somewhat reduced figure compared to the previously known 25%. President Trump referred to April 2 as 'Liberation Day' and pledged to announce the new tariff plan, but few details have been disclosed.
According to WP, the White House is considering a plan to increase tariffs by 20% on products from nearly all countries. The Trump administration expects to bring in about $6 trillion (approximately 8,836 trillion won) in revenue from the tariffs.
Since 12th of last month, the United States has imposed a 25% tariff on imported steel and aluminum, and has warned that it will impose a 25% tariff on imported automobiles starting on the 2nd of this month.
Countries around the world are responding to the United States' indiscriminate tariffs with retaliatory tariffs. Ursula von der Leyen, President of the European Commission, said during a speech at the European Parliament in France that 'Europe has many cards to play, from technology sectors to market size. While we do not want to retaliate, we have a robust plan in place to do so if necessary.'
Canada has indicated it will impose retaliatory tariffs, stating, 'The relationship with the United States based on economic integration and security military cooperation is over.' China has said, 'China will definitely take corresponding measures regarding (reciprocal tariffs).' Mexico, Japan, and South Korea have not made public comments.
If the tariff war escalates, the global economy is expected to suffer significant damage. A research team at Aston University in the United Kingdom estimated that if the United States imposes a 25% tariff on all countries and those countries retaliate with counter-tariffs, trade would decline, resulting in a hit of $1.4 trillion (approximately 2,061 trillion won) to the global economy.