The Trump administration is due to announce its plans for tariffs on goods imported by the US late this evening with new duties taking effect tomorrow.
Last night, US President Donald Trump met with his trade team to discuss the measures.
He is expected to hold a press conference in the White House Rose Garden with members of the US cabinet at 9pm Irish time – after Wall Street markets close.
Mr Trump is expected to promise that his administration will stop the US being “ripped off” and will deliver a new “golden age” of US industry.
While Mr Trump insisted he had decided on the reciprocal tariffs hitting countries that have targeted the United States, the White House admitted he was still ironing out the details with less than 24 hours to go.
The Republican billionaire has had a long love affair with tariffs, insisting in the face of economic experts that they are a cure-all that will tackle the US’s trade imbalances with friends and foes alike.
Critics say that not only will US consumers bear the brunt as importers pass on the cost, but that they could increase the risk of a damaging recession at home and abroad.
Global markets have been jittery for days ahead of Mr Trump’s announcement, while the countries most likely in the crosshairs have called for talks – even as they ready retaliatory measures.
The White House said the president was open to taking calls from other countries seeking last minute deals.
Ireland and the EU are still in the dark as to what tariffs will be imposed and which products will be affected.
That decision could have huge ramifications – particularly for the pharmaceutical industry in Ireland.
After today, the Government faces important negotiations with the EU about potential reciprocal tariffs.
Irish ministers will want to ensure any actions by Brussels will not compound damage by Mr Trump’s announcement.
It is expected to be difficult for the 27 EU member states to reach an agreed position how the trading bloc reacts to US tariffs.
‘Very kind’
The move also underscores the growing and profound gulf between the US and many of its closest allies, not only on trade but on security, defence and almost everything else.
But in typically unpredictable fashion, the 78-year-old US president is keeping the details close to his chest.
Mr Trump has trailed the measures for weeks, initially suggesting that the tariffs would simply match whatever levies other countries impose.
On Monday, he merely said that he would be “very kind” – but gave little away.
As the deadline drew near, US media said he had also been considering blanket 20% tariffs – and then that he was looking at a third option where some countries would get preferential treatment.
White House Press Secretary Karoline Leavitt said Mr Trump was meeting his top advisers on the eve of the announcement, “perfecting it to make sure this is a perfect deal”.
The tariffs would come into effect “immediately” after today’s roll-out, she added – effectively ruling out any delays for negotiations with other countries.
Mr Trump has wobbled on several other tariff announcements since returning to office in January, blinking at the last minute with allies such as Canada and Mexico.
His plans have, however, sparked growing fears of a damaging trade war around the world that could drive up prices and cause widespread disruption.
‘Couldn’t care less’
Major economies including the European Union and Canada have vowed retaliation.
“We are going to be very deliberate in terms of the measures we take, to fight for Canada,” Canadian Prime Minister Mark Carney said yesterday.
The European Union, which Mr Trump has accused of trying to “screw” the United States, said yesterday it still hoped to negotiate a solution – but that “all instruments are on the table” to retaliate if necessary.
British Prime Minister Keir Starmer spoke with Mr Trump on “productive negotiations” towards a UK-US trade deal. Vietnam said it would slash duties on a range of goods to appease Mr Trump.
The former property tycoon has used tariffs as a foreign policy weapon ever since his chaotic first term from 2017-2021.
Mr Trump insists they will bring a “rebirth” of the US’s hollowed-out manufacturing capacity, and said companies can avoid tariffs by moving to the United States.
Sweeping auto tariffs of 25% that Mr Trump announced last week – saying he “couldn’t care less” if prices of foreign cars went up – are due to come into effect tomorrow.
A 25% tariff on steel and aluminum from around the world came into effect in mid-March.
China was hit in March by additional 20% tariffs on all goods, triggering retaliatory duties from Beijing.
The EU has unveiled its own measures to start mid-April.
