While the world holds its breath for President Trump's "Liberation Day" tariff pronouncement on April 2, a few questions are still uncertain. Three major unknowns follow:
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Tariff Rates: What exactly the tariff rates will be remains uncertain. Trump has stated tariffs between 10% and 60%, while some rumors hint at an across-the-board 20% tariff on all imports.
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Implementation Strategy: It is not certain if the tariffs will be imposed universally or country by country. The complexity of applying reciprocal tariffs on more than 12,500 tariff categories creates enormous administrative hurdles.
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Global Impact: The risk of retaliation by trading partners may trigger a global trade war, impacting economic growth and inflation. Markets are anticipating the announcement, which is likely to have sweeping implications for global trade.
Source: BBC, Hindustan Times, Al Jazeera