Trump tariff announcement: Tariff tornado: Why Trump’s trade tempest won’t end so easily tonight on April 2

The clock is ticking. At 1:30 AM IST, US President Donald Trump will step into the White House Rose Garden to announce the long-awaited reciprocal tariffs. But if markets were hoping for closure, they’re in for a rude shock—this saga is far from over.

The White House has confirmed that Trump will impose new tariffs on Wednesday, without providing details about the size and scope of trade barriers that have businesses, consumers, and investors fretting about an intensifying global trade war.

White House spokesperson Karoline Leavitt said reciprocal tariffs on countries that impose duties on US goods would take effect once Trump announces them, while a 25% tariff on auto imports will take effect on April 3.

The uncertainty is palpable, and investors know all too well that Trump’s trade maneuvers don’t follow a predictable script. “The element of uncertainty regarding reciprocal tariffs is expected to come down with the tariff declaration today. But considering Trump’s flip-flops on tariffs earlier, the uncertainty is likely to continue beyond today,” warns Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.

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A High-Risk Gamble That’s Already Fraying

Nigel Green, CEO of global financial advisory firm deVere Group, is blunt in his assessment—Trump’s tariffs are a high-risk experiment that is already unraveling. “While the White House touts the rollout of ‘reciprocal’ tariffs as a bold move to reclaim industrial might, we see them as a high-risk experiment that’s already fraying at the edges.”Green argues that the cracks in the strategy are already visible. “Retaliatory measures are already biting. China has slapped tariffs on American energy and agriculture. The auto industry, a critical US employer and export engine, is now staring down a crisis that will ripple from Detroit to Düsseldorf.”And then there’s the consumer pain. “Inflationary pressure will build, especially with US companies passing import costs on to consumers. We anticipate it won’t take long for the political pain of higher prices to outweigh any perceived geopolitical leverage,” Green explains. “His political instincts, sharp as ever, will tell him when this economic brinkmanship becomes a liability. And it will. The ‘America First’ rhetoric can only carry so far once voters start to feel the squeeze from more expensive cars, food, and consumer goods.”

Markets Crave Clarity, But Will They Get It?

Trump has made tariffs the cornerstone of his current trade agenda, but Green doesn’t believe it will hold for long. “We believe this cornerstone will soon crack under the weight of its own contradictions. Markets crave clarity, businesses need stability, and consumers demand relief from the very price shocks these policies create. A backpedal is not only likely—it’s almost inevitable.”

Reports of on-again, off-again trade actions, month-long tariff delays, and fluctuating definitions of “reciprocity” suggest that the administration itself is still in flux. “This leaves room for recalibration,” says Green, hinting that some of the harsher tariffs might be softened over time.

“We believe the 25% tariffs on auto imports, for example, will be among the first to face internal resistance. The car industry’s intricate global web means any sudden spike in costs will reverberate quickly through jobs, prices, and production schedules.”

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The Real Game Begins Now

Arvind Sanger of Geosphere Capital Management believes that the biggest question isn’t just what Trump announces—it’s what comes next. “But the questions then become, do others retaliate? Does it become a ratcheting? So, this is game theory now as to what comes next. Is there retaliation? Is there negotiation to bring the tariffs back to normal for both sides? How will this play out?”

His warning to markets is clear: expect prolonged uncertainty. “I am somewhat skeptical that we will get an all-clear signal or great clarity that will be known once Trump rolls out his tariffs. So, my assumption is there will be negotiations and there will be adjustments as we go along.”

Investors hoping for a clean resolution to the trade uncertainty may be in for disappointment. Trump’s tariffs are just the beginning of another long-winded economic standoff, with retaliation, renegotiations, and potential backpedaling all on the table. The question isn’t just how the markets react tomorrow—it’s how long they’ll have to endure the uncertainty that follows.