President Donald Trump’s promised tariffs, dubbed “Liberation Day,” are set to go into effect immediately, according to the White House. Scheduled to be announced at a Rose Garden ceremony at 4 p.m. ET on Wednesday, these tariffs represent the most aggressive trade policy move by the most tariff-obsessed president in modern history. While many details remain unknown, even to Trump himself, the implications of this move are expected to be far-reaching and potentially disruptive.

The Tariff Strategy and Its Uncertainties

Trump has long vowed to use tariffs aggressively as a catch-all solution to various problems, a strategy that has already caused significant unease among investors, economists, CEOs, and a growing segment of the population. The tariffs announced on Wednesday could be the most extensive yet, with the potential to escalate trade tensions globally. It remains unclear whether Trump plans to levy individual tariff rates on all U.S. trading partners, apply tariffs to only some countries, or impose a universal tariff—perhaps as high as 20%—on all imports.

Economic Concerns and Potential Impacts

The potential economic fallout from such tariffs is a major concern. Moody’s Analytics chief economist Mark Zandi warned that a 20% universal tariff, combined with full retaliation from other nations, would be a “worst-case scenario” for the U.S. economy. A Moody’s simulation found that such an escalation could wipe out 5.5 million jobs, lift the unemployment rate to 7%, and cause U.S. GDP to drop by 1.7% from peak to trough. Zandi noted that while he believes Trump will announce a less extreme tariff regime to avoid such damage, the uncertainty itself is already causing market jitters.

Historical Context and Precedents

Trump’s tariff plans are unprecedented in modern history. Previous presidents have imposed tariffs on specific goods like steel, tires, or electric vehicles, but none have approached the scale of what Trump is considering. The proposed tariffs could apply to roughly $3.3 trillion of imported goods, based on last year’s federal trade data. This is nearly ten times the scope of the tariffs imposed during Trump’s first term, which targeted about $380 billion worth of imports.

Market and Business Reactions

The business community is already feeling the impact of the uncertainty surrounding Trump’s tariff strategy. Consumer confidence has crumbled, unemployment fears have spiked, and inflation expectations have surged to multi-decade highs. Businesses are struggling to plan amid the chaos. “Trump, tariffs, massive uncertainty—how can you do business planning with all of this uncertainty and the daily changes in direction made by the Trump administration?” one manufacturer complained to the Federal Reserve Bank of Dallas.

White House’s Optimistic View

Despite the widespread concerns, the White House remains optimistic about the long-term benefits of Trump’s tariff strategy. Press Secretary Karoline Leavitt argued that the tariffs are aimed at rolling back unfair trade practices that have been detrimental to the U.S. economy for decades. She emphasized that the president’s plans for tax cuts and deregulation will help mitigate the inflationary effects of the tariffs.

As “Liberation Day” approaches, the U.S. and the global economy stand at a crossroads. While the White House believes that Trump’s tariffs will ultimately benefit the American economy, the immediate and long-term consequences remain uncertain. The scale of the proposed tariffs and the potential for retaliatory measures from other countries could lead to significant economic disruptions. Only time will tell whether this bold move will achieve its intended goals or further complicate the already fragile economic landscape.