President Trump’s sweeping global tariffs are set to take hold Wednesday, despite warnings from economists that a trade war could stoke inflation and torpedo the economy.
There is widespread uncertainty over just how far Trump will go.
Initially, Trump had promised only reciprocal tariffs hitting back at countries that have imposed levies on U.S.-made products.
Since then, Trump has promised tariffs on all cars built outside the U.S. and indicated an openness to unilateral tariffs. However, Trump has also considered limited carve-outs or exemptions for countries that are open to giving the U.S. more favorable trade terms.
White House press secretary Karoline Leavitt said Monday there would be "no exemptions at this time." Leavitt also indicated Trump has not made a final decision on how big to go.
"The goal of Wednesday is country-based tariffs but certainly sectoral tariffs. The president has said he's committed to implementing them, and I'll leave it to him on when he makes that decision," she said.
Stock market indices were mixed Monday, although there has been a broad sell-off over the past month.
A new Associated Press-NORC poll released Monday found 60 percent disapprove of Trump’s trade negotiations.
The president’s handling of the economy — once his strongest suit — is now a drag on his administration, with only 40 percent approving.
Trump has brushed off concerns regarding the issue, saying over the weekend that he “couldn’t care less” if car companies raise their prices due to tariffs.
“The world has been ripping off the United States for the last 40 years and more,” Trump said. “And all we're doing is being fair, and frankly, I'm being very generous.”
"People [who] manufacture automobiles in the United States are going to make money the likes of which they've never seen before,” he added. “But beyond that, we have the computer companies, the chip companies, the pharmaceutical companies. We have lumber, we have everything, steel. They're all going to do really well as long as they do their product in the United States.”
Trump’s trade adviser Peter Navarro says Trump’s tariffs will raise more than $6 trillion for the federal government over the next decade.
The administration also argues that the tariffs will bring manufacturing back into the U.S.