Key Insights: President Donald Trump of the United States will announce new tariffs on April 2

President Donald Trump of the United States will announce new tariffs on April 2 and is already eyeing negotiating the tariffs with global partners afterwards.

President Donald Trump will announce new tariffs on April 2 and is already planning to negotiate them with global partners.

While traveling on Air Force One to Florida, President Trump appeared open to discussing tariffs further with trading partners, such as the United Kingdom, after the U.S. imposes them.

President Trump stated that the tariffs will be implemented, and afterward, they will begin negotiating them, likely in the time period after April 2. He explained that the tariffs are being imposed due to years of unfair trade deals.

“We will be announcing the reciprocal tariffs next week in a press conference, and we will be announcing them in a very proportionate manner, really focused on trade,” President Trump said.

President Trump's administration is preparing to impose tariffs of 25% on cars and 10% on pharmaceuticals from the European Union, Canada, and Mexico in retaliation for tariffs that they have placed on U.S. goods.

The new trade action will confront a $1.2 trillion deficit in goods, with April 2 being seen as “Liberation Day”—the focus being on reciprocal tariffs.

President Trump announced a 25% tariff on cars manufactured outside the country, effective immediately, and said pharmaceutical tariffs would follow. However, he did not specify the rates or types of pharmaceuticals, making it difficult for the markets to anticipate the effects or even if they would occur.

President Trump's penchant for blending harsh language with platitudes about fairness, and this week's statement that the tariffs might take people by surprise in terms of their fairness to other countries, has left the markets in a state of uncertainty.

Since President Trump's inauguration in January, the stock market has had a rocky start to the year, with the S&P 500 down about 5% for the quarter.

The S&P 500 fell 2% on Friday, as the government reported higher consumer spending and prices, raising concerns about tariffs fueling inflation.

Market strategists anticipate increased volatility around the April 2 announcement, with price movements closely linked to news of tariffs and reactions from around the globe.

President Trump expressed his openness to reaching agreements, and the U.K. was mentioned as a potential target for tariffs, which would be announced next week.

"They've been cheating us for years, and now it's going to come to an end," President Trump said, referring to the time period after April 2.

The administration is aiming to impose tariffs on all of its trading partners in order to create a level playing field.

It's also worth noting that uncertainty from both friends and adversaries threatens retaliation, making the potential outcomes even murkier.

President Trump is continuing his tariff strategy despite providing specific dates for the tariffs and then adding that they will be announced next week, and also hinting at the possibility of negotiations, which keeps the markets guessing.

As we approach April 2, the world is watching to see how this move by the U.S. will affect trading relationships.