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Trump Intensifies Tariff Strategy Ahead of Key Announcement

President Donald Trump is pushing for a more aggressive approach to tariffs as part of a strategy aimed at overhauling the U.S. economy, according to reports from the Washington Post. This strategy could involve implementing a universal tariff affecting a wide range of imports, disregarding their country of origin. These discussions are taking place just before April 2, a date that Trump has dubbed “Liberation Day,” when he plans to announce new tariff measures.

Sources indicate that the proposed universal tariff is viewed as less susceptible to exemptions, which can dilute its impact. The White House is actively deliberating this and other tariff strategies as they prepare for Trump’s upcoming announcement.

Currently, a plan proposed by Treasury Secretary Scott Bessent, known as the “dirty 15,” is seen as the most probable outcome, targeting tariffs at the 15% of countries identified as the least favorable trading partners, according to the Post.

Wilbur Ross, who served as Trump’s commerce secretary, commented on the ongoing discussions, stating, “There are still many options on the table. They are evaluating everything to ensure that any reciprocal tariff is both comprehensible to the public and effective.” This approach demonstrates a thorough examination of alternatives to achieve the most favorable outcome for U.S. interests.

The administration’s perspective on tariffs has evolved, having already implemented levies on imports from countries such as China, Canada, and Mexico, as well as sectors like steel, aluminum, and automotive products. Trump has also hinted at future duties affecting pharmaceuticals and tech industries.

While Trump indicated that reciprocal tariffs will be announced on April 2, he has also mentioned the possibility of demonstrating “flexibility” in their application. This has led to speculation that future tariffs could be tailored more narrowly, calming concerns among investors about their potential repercussions.

However, the announcement regarding auto tariffs sparked market volatility, contributing to stock market declines, as investors began to fear that escalating tariffs could exacerbate inflationary pressures impacting consumer sentiment.

The economic landscape is becoming increasingly concerning, with Chicago Fed President Austan Goolsbee cautioning that rising inflation expectations may become a self-fulfilling prophecy. Similarly, Boston Fed President Susan Collins emphasized that tariff-induced inflation appears to be “inevitable,” suggesting that the central bank may need to maintain current interest rates for an extended period.

After recent policy discussions, Federal Reserve officials downgraded their economic growth forecasts while raising inflation estimates, rekindling fears of “stagflation”—a mix of stagnant economic growth and high inflation.

Surveys reflect a pessimistic outlook among both consumers and businesses, particularly in traditionally strong support areas for Trump, where many executives are reporting deteriorating business conditions amid ongoing uncertainty surrounding tariffs and government layoffs.

Economic analysts are increasingly raising the likelihood of a recession, with some forecasting a 50% probability of an economic downturn in the near future.

Fitch Ratings previously projected that if all proposed tariffs are enacted, the effective U.S. tariff rate may surge to an average of 18%, which would mark the highest level experienced in nine decades.

Trump has acknowledged that implementing tariffs may cause “some pain” to Americans, yet he maintains they are a necessary step to rejuvenate U.S. manufacturing and achieve a more favorable trade balance.

As companies consider reshoring production, concerns persist that tariffs aimed at transforming the auto sector—characterized by intricate supply chains that extend to Canada and Mexico—could lead to considerable chaos in the industry.

Nevertheless, the administration remains dedicated to fulfilling Trump’s vision of revitalizing the U.S. industrial base. “America cannot simply be a collector of foreign-made parts; we must evolve into a manufacturing powerhouse that leads in every essential sector impacting our national security and economic interests,” stated spokesperson Kush Desai.

This report originally appeared on Fortune.com.

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