Reciprocal tariffs are coming - 5 things that we 'still' don't know about Donald Trump's 'Liberation Day' announcements

Pro-tariff headlines are displayed on a monitor as White House press secretary Karoline Leavitt speaks during the daily press briefing in the Brady Press Briefing Room at the White House on April 1, 2025 in Washington, DC. (AFP)

The clock is ticking for the big bang reciprocal tariffs announcement by US President Donald Trump. Even as the details remain sketchy, latest reports say that the US President will unveil the new round of tit-for-tat levies at a ceremony in White House Rose Garden around 1:30 am (IST). While there is a lot of trepidation among the investors and major economic blocs over the scale of the tariffs, one thing is clear that Trump will not back down, for now. The White House in its latest communication said that the tariffs will come into effect ‘immediately.’ So, will there be no scope for negotiations? Is there a ‘Plan B’? What’s happening in India, which is part of the list of nations likely to be impacted by the reciprocal duties. As new chapter of Trump’s trade war goes down the wire, here are three major things that we still don’t know about this major economic development:

1: This will be the first Rose Garden press conference by Donald Trump after he assumed the office in his second stint. The entire Trump Cabinet will be present during the announcement ceremony. While it is clear that Trump will hold the presser but what exactly he will say is still unknown. Will it be country-based announcement? Or will he target specific group of nations? Nothing is clear as of now.

2: This leads us to second point of confusion. While Trump and his advisors have repeatedly said that the tariffs are the only way to “Make America Great Again,” the ambit of tariffs still remain unknown. During his Presidential Poll campaign, Trump had promised 10 percent standard levies on all imports. But that rate of tariff varied over time. From 10 percent to as high as 60 percent for Chinese imports. So, what’s the rates of tariffs that will kick in? No input on this so far.

Trump Tariffs Announcement News Live: World stares at new trade war

3: Rates of reciprocal tariffs is not just the only problem in this trade quagmire. The White House has also spoken about duties such as Value Added Tax. A BBC report said that the White House has said that there is lots of confusion among key sectors such as aluminium and steel. Nobody is sure as to how they will have to factor in the reciprocal tariffs along with any change in the policy on VAT and other such duties.

4: Probably the biggest worry in the tariff conundrum – Who is in the line of fire? Treasury Secretary Scott Bessent has spoken about ‘Dirty 15’ – a bunch of nations that the US feels need to be targeted for taking unfair advantage. Trump on Sunday repeated that there will be no exception and ‘all countries’ will be included in the reciprocal tariffs policy. For countries such as India and the UK, this may become an uncomfortable reality. While London hoped that it will be out of the ambit, back in New Delhi, there were hopes of bilateral ties helping to wiggle out of this trade war. But as the things stand, there seems to be no respite for any nation. However, there is still a scope of last-minute change. So, confusion remains.

5: This brings us to the single most important point and biggest worry – How will these reciprocal tariffs impact the global economy? The most simplistic explanation is that the duties are on imports so the companies getting the goods to the US will pay. But as a BBC report said that ambit of tariffs may impact the global supply chain with companies asking the suppliers to share the load or increasing the prices in the American markets. There is no clarity regarding this. Many in India feel that the low exposure to the US will results in minimal impact.