Trump’s ‘Liberation Day’ Won't Ease Trade Policy Uncertainty for Businesses

President Donald Trump is set to announce a series of reciprocal tariffs on April 2, dubbed 'Liberation Day' for the United States. The new measures, which seek to equalize U.S. import duties with those imposed abroad, are aimed at addressing perceived imbalances in trade. However, despite the administration’s claims of protecting domestic industries, businesses across sectors—from pharmaceuticals to lumber—remain cautious as uncertainty about the long-term impact on investments and economic growth persists.

Supplemental reports indicate that while some proposals include tariffs ranging between 10-25%, market experts warn that these measures could exacerbate economic slowdown and prolong trade tensions with key partners. Critics argue that the potential for prolonged uncertainty, combined with retaliatory measures from trading allies, may undermine growth prospects, risking at least a 1% drop in GDP over several quarters. As the global debate unfolds, industry leaders and financial markets continue to evaluate the potential fallout from this high-stakes trade strategy.