What the world can expect on “Liberation Day”

Donald Trump

Five points about: Donald Trump’s Liberation Day

Gustaf Tronarp

Updated 14.05 | Published 13.56

Trump’s administration is expected to impose major tariffs on Wednesday. Photo: AP

President Donald Trump has declared Wednesday a “Liberation Day” for the United States.

The administration is expected to impose massive tariffs on a number of countries – but the details are still unknown.

Here are five points about what the world can expect.

1. This is what will happen

Donald Trump  is expected to hold a press conference in the White House Rose Garden on Wednesday. It will be the first of his second term. According to American media, Trump will then present a number of tariffs aimed at making the United States less dependent on foreign goods.

– The package will restore the unfair trade policies that have exploited our country for years, said press secretary Karoline Leavitt.

2. The scope is unclear

Exactly which tariffs will be imposed, and how large they will be, is unknown until the last minute. Donald Trump and his administration have made a variety of statements in recent weeks. What is clear is that the US will impose global trade tariffs on all car imports to the country starting April 3. Trump hopes that this will secure domestic car production. However, the Bloomberg news agency expects that the tariffs will reduce US GDP by 0.3 percent.

3. Why Trump is imposing the tariffs

During the election campaign, Donald Trump promised to strengthen the US economy. He promised that unemployment would decrease and that dormant industries would be revived. And other countries would foot the bill. Tariffs on goods imported from other countries have been highlighted as a key factor in increasing US prosperity and restoring the country's position on the global stage.

4. Risk of trade war

International analysts see major risks with the historic tariff package. It is expected to lead to many Americans losing their jobs while prices in the country increase. Globally, there is a risk of countermeasures from other countries. European Commission President Ursula von der Leyen has said that the Union "will protect its economic interests":

- As I have said before, tariffs are taxes. Bad for companies, worse for consumers in both the US and the EU.

5. How you can be affected

Companies tend to pass on the costs of tariffs to consumers. In short, this means that imported goods become more expensive. Tariffs can also cause inflation to rise, which increases costs for all households. The turbulence has also led to a stock market crash. This affects everyone who saves in shares and funds.