Donald Trump April 2 ‘Liberation Day’ Announcements: 25% tariffs on imported automobiles; US President describes India has ‘very, very tough’ (trade partner)—Key takeaways

Donald Trump April 2 Tariff Announcements: US President Donald Trump announced reciprocal tariffs on major trade partners on Wednesday, April 2, in an event dubbed as “Liberation Day for Americans”. He announced 25 per cent tariffs on all imported automobiles, effective midnight local time (April 3). 

Addressing the media from the White House Rose Garden, Trump said the following:

Donald Trump explaining the reciprocal tariffs in his “American Liberation Day” address on April 2

• But it’s not going to happen anymore

• Sometimes the friend is worse than the foe (describing the need for reciprocal tariffs) 

• They do it to us… We do it to them

• Very simple (reciprocal tariffs)

• I call these ‘kind reciprocal tariffs’, they’re not full reciprocal tariffs  

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The world’s largest economy has active trade agreements with more than 20 countries including India.

For weeks, growing concerns about the US President’s harsh action on the trade front, and retaliatory action by America’s major trade partners, coming in the way of economic growth kept investors on the back foot. Jitters from Trump’s tariff action have kept investors on tenterhooks, fearing that too much disruption can come in the way of economic growth while causing inflationary pressure.