Trump’s ‘Liberation Day’ Tariffs to be Unleashed Soon: India, Global Markets Brace for Fallout

As Donald Trump prepares to announce sweeping new tariffs on all countries, including India, global markets shudder and trade partners threaten retaliation. Will this redefine global commerce or spark another trade war?

April 2, 2025: Washington/New Delhi – The global economy is on edge as US President Donald Trump prepares to unveil his long-anticipated “Liberation Day” tariffs today, targeting all foreign countries with sweeping import duties. The move is expected to have immediate economic ramifications, with India and several other nations already bracing for impact.

Also Read: Indian Markets Brace for Volatility: 8 Key Overnight Cues From Gift Nifty to Trump’s Tariff Shock

Here are 10 key developments on this major global story:

1. All Countries on the Radar:
   Trump confirmed over the weekend that no country will be exempt from his new tariff strategy. “You would start with all countries,” he told reporters, ending speculation that only select nations would be targeted.
2. India May Cut Tariffs:
   Hours before the formal announcement, Trump claimed India is set to “drop tariffs very substantially”, particularly on American goods. He lauded this as a long-overdue correction in trade relations.
3. White House Points at India’s Agriculture Tariffs:
   Citing a 100% tariff on American agricultural products, White House Press Secretary Karoline Leavitt accused India of “unfair trade practices.” She also listed similar high tariffs by Japan, the EU, and Canada.
4. India-US Trade Balance:
   From 2021 to 2024, the US was India’s largest trading partner. In 2023-24, India enjoyed a $35.32 billion trade surplus with the US. Tariff hikes could now put this trade relationship under serious strain.
5. Trade Talks Underway:
   India and the US are preparing for sector-specific talks to shape a new Bilateral Trade Agreement (BTA). Commerce Minister Piyush Goyal has stated that the discussions are “progressing well.”
6. Markets React Sharply:
   The Sensex plummeted 1,390 points while the Nifty lost 354 points on Tuesday amid fears of retaliatory tariffs and global economic disruption stemming from the US move.
7. New Auto & Metal Tariffs Already In Play:
   Last week, Trump had already imposed 25% tariffs on auto imports and revived steel and aluminum duties, signaling aggressive trade protectionism.
8. Global Backlash Brewing:
   European Union chief Ursula von der Leyen warned of a strong retaliation if needed, stating the EU “has all instruments on the table” while still hoping for a negotiated solution.
9. China, Japan, and South Korea Unite:
   In a rare show of unity, the three Asian economic powers agreed to coordinate a joint response, holding their first economic dialogue in five years on Sunday.
10. Immediate Enforcement:
    The White House confirmed that the tariffs will take effect immediately following today’s announcement. Businesses worldwide are now racing to assess the fallout.

Also Read: Trump’s Tariffs Target Indian Exports: Liquor, Meat & Sugar Among Worst-Hit Sectors

As Trump pushes forward with his economic nationalism, the world watches with bated breath. The coming days may reshape global trade or reignite full-blown trade wars.

Also Read: ‘India Will Drop Tariffs Substantially’: Trump’s Bold Trade Statement Ahead of ‘Liberation Day’

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Trump tariffs, Liberation Day, India US trade, Donald Trump 2025, global markets, Sensex crash, Nifty 2025, tariff retaliation, US protectionism, agriculture trade, bilateral trade agreement, Piyush Goyal, Karoline Leavitt, Ursula von der Leyen, China US trade, Japan South Korea trade