 "Ahead of April 2 tariffs deadline, Trump aides unsure 'what boss will do'")
As the April 2 deadline for implementing new tariffs approaches—a date US President Donald Trump has dubbed "Liberation Day"—uncertainty looms within the White House and among administration officials regarding the specifics of the impending trade measures. Despite public assurances aimed at calming markets, internal discord and unpredictable policy shifts have left many questioning the administration's direction.
According to a report in Politico, top Trump officials, including Vice President JD Vance and Chief of Staff Susie Wiles, have privately expressed uncertainty about his exact intentions for the upcoming tariffs. An anonymous White House ally highlighted the confusion, stating, "No one knows what the f*** is going on."
The Trump administration's unpredictability was exemplified by the recent imposition of a 25 per cent tariff on the auto industry—a decision made so abruptly that it delayed other White House activities and left industry stakeholders unprepared. Such sudden policy shifts have increased anxieties among businesses and investors, with Trump saying he “couldn’t care less” if automakers raise car prices in response.
Global trading partners on edge
The forthcoming 'reciprocal tariffs' are intended to match the duties that other countries impose on US exports, which Trump perceives as unfair trade practices. However, the lack of detailed information has left global trading partners uncertain about how to respond.
Some nations are proactively seeking to mitigate potential impacts. For example, Canada has launched an "education campaign" across 12 US states, using billboards to highlight the economic drawbacks of tariffs. Messages such as "tariffs are a tax on your grocery bill" aim to inform American consumers about the potential domestic consequences of trade barriers, according to a report by the New York Post.
Potential tariffs on India
India faces significant implications from the anticipated US tariffs, particularly in the automotive sector. The Trump administration's plan to impose a 25 per cent duty on auto imports could affect Indian automobile manufacturers and component exporters. Analysts predict that operating margins for Indian auto parts exporters may shrink by 125-150 basis points as a result.
Despite these challenges, some experts believe the overall impact on India's auto sector may be limited. The Global Trade Research Initiative (GTRI) suggests that the direct effect of US auto tariffs on India will be minimal, given the relatively small volume of Indian auto exports to the US.
Market reactions
The ambiguity surrounding the tariff plans has led to heightened market volatility. The S&P 500, which had previously regained some ground after earlier losses, faces renewed uncertainty as investors react to the administration's inconsistent trade policies. Economists warn that the tariffs could contribute to inflationary pressures, particularly in sectors like automobiles, pharmaceuticals, semiconductors, and lumber, where President Trump has threatened additional duties.
As the April 2 deadline nears, businesses, consumers, and policymakers remain on edge, awaiting definitive guidance from the White House. The administration's internal divisions and the Trump's unpredictable decision-making process continue to fuel uncertainty, leaving many to speculate on the potential outcomes of "Liberation Day."