President Trump decides to ease up on April 2nd reciprocal tariffs

President Donald Trump is now backing off plans to announce new industry-specific tariffs on April 2, according to a Monday report from the Wall Street Journal, which said the White House is still moving forward with reciprocal tariffs, but is now leaving out the broader measures on automobiles, pharmaceuticals, and semiconductors that were expected.

The original plan was to launch those sector-wide tariffs alongside the reciprocal ones, but White House officials now say they’re unlikely to be rolled out on the same day.

The administration still plans to go ahead with the reciprocal tariffs on April 2. Trump called that date “Liberation Day”, saying it’s when the U.S. would finally match what its trading partners charge in tariffs. But the White House is narrowing the scope.

An official said the administration is focusing instead on a targeted list of countries that represent the largest share of U.S. imports. Those targeted nations will face increased tariffs, while the broader industry-level duties are being paused for now. The White House did not respond to questions about whether the other tariffs could still come at a later time.

White House prepares tariff blitz on top trading partners

The reciprocal tariffs will now hit around 15 countries that the U.S. sees as having unfair trade imbalances. These countries make up the majority of American imports, and Treasury Secretary Scott Bessent referred to them last week as the “dirty 15.”

Instead of using the earlier plan that divided countries into three groups with different tariff levels—high, medium, and low—the administration is now giving each country its own custom tariff rate.

Countries expected to be hit include China, Brazil, India, Japan, Vietnam, Canada, Russia, Mexico, Australia, South Korea, and others in the G-20. Those names match up with countries listed in a recent Federal Register notice from the U.S. Trade Representative, which asked the public to comment on trade imbalances with these nations.

The change in approach follows Trump’s order in February 2025 that told federal agencies to study trade relationships and come up with a reciprocal tariff structure. But the White House is now skipping the tiered model it initially considered and instead assigning tariffs based on the size and nature of each trade imbalance.

Officials involved in the planning said the goal is to punish the countries that take the biggest bite out of U.S. trade. While the “dirty 15” are expected to get hit the hardest, some other nations may still receive less severe tariffs as part of the overall action.

The administration’s plan will likely result in tariff levels the U.S. hasn’t used in decades. Officials said these new tariffs could be made active immediately on April 2 under Trump’s emergency economic powers, a move that wasn’t expected earlier this year.

Back in February, a White House official said April 2 would bring a report—not action—but that changed. Now the administration is ready to flip the switch right away.

Canada, Mexico, and fentanyl-linked tariffs remain unclear

The White House still hasn’t clarified what it plans to do with tariffs Trump said were aimed at Canada and Mexico over fentanyl trafficking. Trump had previously said those countries would face penalties, but officials won’t say if those tariffs are still in the plan for April 2. They also haven’t said if the now-delayed sector-specific tariffs could return later.

Officials from Canada and Mexico were told earlier that there was no way to avoid reciprocal tariffs, though they’re hoping Trump will be open to negotiating after April 2. A foreign official said last week, “The U.S. feels it will have the strongest hand if everyone is on a burning platform when talks begin.”

Back in D.C., American industries have been trying to get answers from the White House. Executives and lobbyists have been meeting with officials, trying to get carve-outs from the tariffs. But the response so far has been almost all rejections.

During a private meeting at the White House last week, Trump told a room full of oil executives that he didn’t want to hand out exemptions, according to one of the people who attended. He said he might consider a few here and there, but he wouldn’t commit to any. When asked specifically about steel and aluminum, Trump refused to say yes or no.

Jamieson Greer, the U.S. Trade Representative, also attended the meeting. He told the group that he wasn’t interested in carving out exceptions. Greer said that in the first Trump administration, they gave out too many, and that it watered down the effect. Commerce Secretary Howard Lutnick also spoke during the meeting and said he didn’t expect many exemptions at all.

But a White House official later denied that tariffs were even discussed at the meeting. That official claimed the topic never came up, though others in the room say it did.

Another executive who had been lobbying against the tariffs said Trump told him that corporate America would eventually like them. Meanwhile, lobbyists representing Fortune 500 companies have been flooding White House phone lines trying to get exemptions.

A person close to Trump said that offering exemptions right now would weaken his negotiating power later. That’s why no official exemption process has been announced yet. But lobbyists haven’t stopped. Some are now telling their clients to go directly to senior White House or Commerce officials and show them how the tariffs would affect their business. If they can prove they’re planning to bring manufacturing back to the U.S. within six months, they’re being told to ask for a temporary break.

One Fortune 500 CEO said, “April 2 can’t get here fast enough.” Companies just want to know what the hell is actually going to happen.

Trump signals he may not back down again

Trump gave automakers a short pause from tariffs on Canada and Mexico last year, especially for products that follow the USMCA trade agreement. But on Friday, he complained that people had attacked him for backing off. He said that experience is making him rethink how he handles this next round.

During the same Friday talk, Trump said, “Once you give exemptions for one company, you have to do that for all.” He then added, “The word flexibility is an important word. Sometimes there’s flexibility, there’ll be flexibility.”

So far, it’s clear that April 2 is still the day Trump plans to launch his reciprocal tariffs, even if the rest of the original plan is now delayed or left uncertain. That includes the fentanyl-linked tariffs on Canada and Mexico, the massive duties on specific industries, and any idea of exemptions.

No one knows if or when those pieces will come into play. But as of now, the only thing certain is that a smaller group of countries will get hit hard with new tariffs next week, and financial markets are in for another yo-yo ride.

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