World economies brace for tight Trump tariffs ahead of deadline

Trump Is set to announce on Wednesday exactly what tariffs will be imposed and whether they will target entire sectors

- 

World economies were jittery on Monday ahead of US President Donald Trump’s “Liberation Day” when he is set to unleash tariffs against multiple countries, sparking global turmoil to redress what he says are unfair trade imbalances.

Trump - who has been making unprecedented use of presidential powers since taking office in January - is set to announce Wednesday exactly what tariffs will be imposed and whether they will target entire sectors.

Trump insists that reciprocal tariffs are needed because the world’s biggest economy has been “ripped off” by every country in the world. But critics warn that the strategy risks a global trade war, provoking a chain reaction of retaliation by major trading partners like China, Canada and the European Union.

Market jitters intensified after Trump over the weekend said tariffs would include “all countries.”

Trump’s fixation on tariffs is already fanning US recession fears. Goldman Sachs analysts raised their 12-month recession probability from 20 per cent to 35 per cent.

The outlook is “lower growth forecast, falling confidence, and statements from White House officials indicating willingness to tolerate economic pain,” Goldman Sachs also lifted its forecast for underlying inflation at end-2025.

Already, China and Canada have imposed counter-tariffs on US goods, while the EU unveiled its own measures due to start in mid-April. More countermeasures could come after Wednesday.