U.S. Trade Rep readies a third tariff option for Trump
U.S. President Donald Trump speaks to the media in the Oval Office at the White House in Washington, D.C., U.S., March 26, 2025.
Evelyn Hockstein | Reuters
The U.S. Trade Representative’s office has prepared a third option for tariffs, the Wall Street Journal reports.
This tariff structure would set a rate below 20%, but apply it only to a small group of trade partners.
There are two other plans under consideration at the White House.
- A universal flat tariff rate applied to all trade partners.
- A different tariff rate for every trade partner that reflects what the administration views as that country’s overall import barriers to U.S. goods.
Read more at The Wall Street Journal.
— Erin Doherty
White House Press Secretary Karoline Leavitt holds a press briefing, as headlines from articles on U.S. President Donald Trump’s tariffs are displayed, at the White House in Washington, D.C., U.S April 1, 2025.
Carlos Barria | Reuters
Trump’s new tariffs will take effect “immediately” after he announces them in the Rose Garden, White House press secretary Karoline Leavitt said Tuesday.
The timeline offered a morsel of clarity about the reciprocal tariff plan, which remains highly opaque just hours before it is set to be unveiled.
— Kevin Breuninger
Canada’s Prime Minister Mark Carney takes part in a press conference to discuss a response to U.S. President Donald Trump’s new tariffs, in Ottawa, Ontario, Canada March 27, 2025.
Blair Gable | Reuters
Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum spoke on the phone in advance of looming U.S. tariffs to reaffirm their “strong trading and investment relationship,” Ottawa said.
“With challenging times ahead,” the two leaders “emphasized the importance of safeguarding North American competitiveness while respecting the sovereignty of each nation,” Carney’s government said in a statement after Tuesday’s call.
Carney also laid out his “plan to fight unjustified trade actions against Canada” by the Trump administration.
In separate remarks to reporters on Tuesday, Carney said Canada is prepared to retaliate against whatever actions the U.S. takes Wednesday.
“We have held back, but we will not disadvantage Canadian producers and Canadian workers relative to American workers,” he said.
— Kevin Breuninger
People shop at a grocery store in Manhattan on April 01, 2025, in New York City.
Spencer Platt | Getty Images
Trump is about to drop a sweeping tariff policy on an economy that already seems to be showing cracks.
Several top analysts have lowered economic growth projections in recent weeks and warned of persistent inflation, dragging the term stagflation back into the conversation.
Strategists and fund managers have also recently raised the probability of a recession, a shift that stems in large part from concerns about the Trump administration’s fiscal policies.
These fears coincide with a highly volatile stock market and souring sentiment from consumers and businesses alike.
— Kevin Breuninger
