By US President Donald Trump’s administration is finalizing details on its reciprocal tariff strategy, with only hours remaining before the anticipated announcement. Despite Trump’s claim that his decision was already made earlier this week, sources close to the matter indicate that discussions are still ongoing, and the final scope of the tariffs remains undecided.
On Tuesday, officials continued refining the tariff framework in preparation for an event in the Rose Garden, scheduled to begin as U.S. financial markets close at 4 p.m. Wednesday. According to sources familiar with the discussions, the administration has not yet finalized its approach. These sources, who requested anonymity, said that while US President Trump had publicly stated he had settled on a plan, internal deliberations were still taking place.
Among the options under consideration is a tiered system that would impose either a 10% or 20% tariff on imports from different countries, depending on the trade barriers they impose on U.S. goods. Another alternative involves a customized approach, where tariffs would be specifically adjusted for individual nations based on their existing levies and non-tariff restrictions.
As speculation spread across Washington and Wall Street, businesses, foreign governments, and lobbyists scrambled to obtain last-minute details. The Wall Street Journal reported that some White House officials were assessing a more focused strategy, while Fox News suggested that US President Trump was still evaluating the possibility of a uniform 20% tariff on all imports.
Despite the increasing anticipation, the White House remained tight-lipped about the specifics of the policy. Treasury Secretary Scott Bessent, speaking before lawmakers, indicated that the announced tariffs would represent a cap—allowing countries to take steps to lower their imposed rates. Representative Kevin Hern, an Oklahoma Republican, relayed this information to CNBC. Meanwhile, White House Press Secretary Karoline Leavitt emphasized that while the tariffs would be implemented immediately, US President Trump remained open to further negotiations.
“The US president is always open to discussions and willing to negotiate if necessary,” she stated.
The event itself is being framed as a “Make America Wealthy Again” rally, reinforcing the administration’s economic message. Attendees will include cabinet members, lawmakers, and representatives from the U.S. steel industry. According to sources, White House officials plan to promote Trump’s trade policy throughout the day via various media appearances, with spokesperson Harrison Fields participating in a discussion with former press secretary Sean Spicer on Tuesday.
Although multiple approaches are on the table, some strategies are gaining prominence. The administration has strongly criticized the trade policies of the European Union, Japan, India, and Canada, arguing that their tariffs and restrictive trade practices unfairly impact American exports. Under a two-tiered system, higher duties would be placed on nations identified as the worst offenders, considering both explicit tariffs and indirect barriers that limit U.S. imports.
Another possible approach involves tailoring tariffs individually to each country, aligning them with existing restrictions on American goods. While this method has been signaled for weeks, recent discussions suggest it may no longer be the primary focus. A uniform global tariff remains an alternative under discussion, potentially applying to all imports regardless of origin. Some reports also indicate that Trump may be contemplating a narrower set of tariffs targeting specific nations at a rate below 20%.
By midday Tuesday, Leavitt confirmed that US President Trump was still working closely with his trade and economic advisors to finalize a policy that would be “ideal for American businesses and workers.”
Whatever approach is ultimately adopted, the tariffs are expected to be far-reaching, impacting nations regardless of whether they have trade surpluses with the U.S. If fully implemented, they could represent one of the most significant import tax measures in American history. The White House has also hinted that negotiations with affected countries could lead to further adjustments in the coming months.
The new tariffs could take effect immediately, potentially impacting goods that are already in transit to the U.S. While the administration has stated that the levies will be enforced as soon as the announcement is made, they are expected to formally begin at 12:01 a.m. Thursday, coinciding with previously scheduled tariffs on automobile imports. The government has delayed implementation of past tariffs due to logistical issues, and similar challenges could arise this time as well.
US President Trump’s last-minute decision-making process is not unusual, as a similar pattern was observed in his handling of recent auto tariffs. However, the ongoing deliberations indicate a lack of consensus within his administration. Some external analysts warn that the proposed tariffs could have severe economic consequences, potentially triggering a recession.
The uncertainty surrounding these measures has already unsettled financial markets, led economists to revise their growth projections downward, and forced central banks to assess the potential inflationary effects of increased import costs.
US President Trump’s goal is to generate $700 billion in annual tariff revenue, according to Peter Navarro, one of his most influential trade advisors. While Trump insists he made his decision “long ago,” the administration has remained vague on specific details. Leavitt echoed this assertion but refrained from clarifying which proposal would be implemented.
Unanswered questions remain, including whether tariffs already imposed on China, Canada, and Mexico will be replaced or maintained under the new policy. The White House has yet to confirm whether the trade agreement between the U.S., Canada, and Mexico will impact the structure of these new tariffs.US President Trump has also hinted at upcoming tariff measures on pharmaceuticals, semiconductors, and lumber, suggesting that further trade policy shifts may be on the horizon.
