The White House introduced a new two-step tariff strategy during a Rose Garden event, marking Donald Trump's much-anticipated "Liberation Day" plans. The President outlined a 10% baseline tariff rate to be imposed on all countries, with additional tariffs for what the administration deems as the worst offenders. Trump justified these additional rates by pointing to both tariffs and non-tariff barriers that he has criticized in the past.

Highlighting a chart at the event, Trump revealed that China would face a 34% tariff, followed by the European Union at 20%. He expressed that these tariff rates were just half of what his team had discovered and hinted at the possibility of imposing even higher rates. Trump emphasized that the policy aimed at achieving reciprocity and preventing the US from being taken advantage of in trade relations.

The event was attended by the Vice President, cabinet officials, congressional leaders, and workers expected to benefit from the new policies. Trump identified various countries as either "friend or foe," accusing some of exploiting the US in trade. The announcement of the tariff plan represents a significant shift in global trade dynamics and aligns with Trump's longstanding focus on addressing unfair trade practices.

This decision represents a compromise between different tariff strategies that were under consideration within the administration. Trump's objectives with the tariffs are aimed at creating a level playing field and reducing trade deficits while maintaining an air of unpredictability for trading partners. There are concerns surrounding the impact of the tariff plan on the economy and global markets, with ongoing volatility expected in response to the announcement. Additionally, countries like China, Japan, and South Korea have signaled their intent to collaborate in responding to Trump's tariff actions.