- President Trump is set to unveil potentially the biggest hike in U.S. import duties since the Smoot-Hawley Tariff Act nearly a century ago, and reports suggest staffers are still jockeying for the chance to change his mind up until the final moment.
President Donald Trump and his economic team had not yet decided on the size and shape of his “Liberation Day” tariff plan 24 hours before it was set to be revealed in a Rose Garden ceremony at the White House at 4 p.m. on Wednesday, according to reports.
Bloomberg cited anonymous sources in the administration as saying Trump was undecided whether to impose a simple, easy-to-understand flat tariff (of 20%, for example). The alternative is to opt for a more targeted approach where hikes are tailored to hurt more protectionist trading partners, such as the European Union, the most.
The arrival of broad punitive tariffs—expected to take effect within 24 hours of their announcement—could force companies to scramble to redirect cargo already en route to the United States.
Speaking to reporters on Tuesday, White House press secretary Karoline Leavitt said Trump was “with his trade and tariff team right now perfecting it to make sure this is a perfect deal for the American people and the American worker.”
Foreign leaders continued to attempt to influence Trump’s plan and carve out exceptions for their countries as the Wednesday deadline approached.
On Tuesday, Israeli Prime Minister Benjamin Netanyahu unilaterally dropped all duties levied against U.S. goods.
This came without the previous negotiation of a free trade agreement, meaning all World Trade Organization members are now within their rights to sue Israel under the organization’s bylaws in order to win similar treatment.
The White House did not respond to Fortune’s request for comment by press time.
‘2025 tariffs could be so much more devastating than Smoot-Hawley’
Trump’s late tweaks to any tariff announcements speak to the complexity of rewriting long-existing trade relations and uprooting entire supply chains.
Financial markets have not been able to predict the likely effects on gross domestic product, inflation, or asset prices.
On Sunday, Goldman Sachs hiked its probability for a U.S. recession from 20% to 35%, as planned investments are postponed and the economy risks grinding to a halt.
Investors sent gold to a new all-time high above $3,000 an ounce on Tuesday, fueling fears about what the changes will mean for U.S. stock and currency markets.
Spencer Hakimian, founder of New York macro hedge fund Tolou Capital, also warned that tariffs could backfire worse than the punitive duties that deepened the Great Depression.
“The economic damage from the 2025 tariffs could be so much more devastating than Smoot-Hawley,” he wrote. “The economy is five times more exposed to tariffs today than it was 100 years ago when we learned our lesson.”
