On February 3, 2025, in the Oval Office, US President Donald Trump, flanked by Secretary of Treasury Scott Bessent (L) and Secretary of Commerce nominee Howard Lutnick (R), signed an executive order establishing a US sovereign wealth fund.
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According to a report by the Washington Post on Tuesday, White House aides have put together a proposal that would impose tariffs of approximately 20% on a majority of imports.
The report, based on information from three sources familiar with the discussions, noted that White House advisors have indicated that multiple options are still being considered, suggesting that the 20% tariffs may not be implemented. Another strategy under evaluation is a “reciprocal” tariff system based on individual countries, the Washington Post added.
This report emerges just ahead of April 2, when President Donald Trump is expected to unveil more comprehensive plans regarding global trade. This date has been pivotal for Wall Street as economic indicators have been significantly affected by uncertainties surrounding the rapidly evolving global trade landscape.
In contrast to previously announced tariffs by the Trump administration, the anticipated new measures are expected to have a broader and more permanent scope, rather than selectively targeting specific nations or industries. President Trump and his team have articulated that their aim is to foster a more balanced trading environment between the U.S. and other nations, while simultaneously generating additional revenue for the federal government.
However, some economists have expressed concerns that these new tariffs could result in slower economic growth and increased inflation in the short term. There is also the risk of retaliatory tariffs from other countries in reaction to the proposals from the White House.
The escalating trade conflict has seemingly dampened the confidence of investors, consumers, and business leaders in recent months. In the first quarter of the year, the S&P 500 saw a decline of 4.6%, while the tech-oriented Nasdaq Composite tumbled by 10.4%. Additionally, surveys of both consumers and business leaders have indicated rising levels of uncertainty since the beginning of 2025.
