President Donald Trump has declared April 2 as “Liberation Day” — a day he claims will free the U.S. from economic dependence on foreign goods. But for many Americans, that freedom could come with a hefty price tag.
What Is ‘Liberation Day’?
Trump says his new wave of tariffs, set to kick in Wednesday, will help American workers and revive U.S. manufacturing. “We're going to charge countries for doing business in our country and taking our jobs, taking our wealth, taking a lot of things that they've been taking over the years,” he told reporters last week.
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He's targeting goods from the European Union, Canada, Mexico, South Korea, Brazil, India and more. That includes everything from cars and copper to pharmaceuticals and lumber. He also wants to impose a 25% tariff on any country that imports oil from Venezuela.
The president says this historic barrage of tariffs will result in more companies setting up shop in the U.S. But critics say it's more likely to raise prices for consumers and disrupt global supply chains.
In a recent interview with NBC News, Trump made clear he isn’t worried about prices going up. "I couldn't care less. I hope they raise their prices, because if they do, people are gonna buy American-made cars," he said. "We have plenty." He added, "If you make your car in the United States, there is no tariff."
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Pressed about whether he had urged automakers not to raise prices, Trump responded, "No, I never said that. I couldn't care less if they raise prices."
Scaramucci: Liberation Day = Liquidation Day
Anthony Scaramucci, former White House communications director and current investor, weighed in early Monday morning with a pointed take: “Liberation Day is Liquidation Day.”
It's a short tweet, but it says a lot. Scaramucci is suggesting that what Trump is calling economic liberation might actually result in asset sales, business losses, and financial pain for everyday Americans.
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How It Could Affect You
Most economists agree that tariffs don't just hurt foreign producers — they raise prices at home too. Auto tariffs alone could add nearly $5,000 to the price of a vehicle, according to economist Art Laffer. Homebuilding costs could jump as well, with Columbus, Ohio Mayor Andrew Ginther warning that tariffs could increase the median cost of a home by $21,000.
“There is a chance tariffs on goods begin to filter through to the pricing of services,” said Samuel Rines, strategist at WisdomTree, told the Associated Press. “Auto parts get more expensive, then auto repair gets more expensive, then auto insurance feels the pressure.”
Even Trump's Treasury Secretary, Scott Bessent, admitted the plan could result in a “one-time price adjustment.” But others warn it might not be a one-off. “We are shifting to a world where a commonly accepted set of rules is being displaced by unilateral actions,” Cornell University's Eswar Prasad told The Guardian.
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Other Countries Are Pushing Back
U.S. allies aren't sitting quietly. Canada, France, and the European Union have already signaled plans for retaliation. French President Emmanuel Macron called the tariffs “not coherent” and warned they would “destroy jobs.”
Trump, meanwhile, has threatened to impose “far larger” tariffs on countries that coordinate their response.
Liberation or Liability?
This isn't the first time Trump has used the term “Liberation Day.” He's applied it to his election victory and his inauguration. But this time, the economic stakes are higher, and so is the public scrutiny.
“I don't see anything positive about Liberation Day,” Phillip Braun, a finance professor at Northwestern University, told the AP. “It's going to hurt the U.S. economy. Other countries are going to retaliate.”
Trump believes he can negotiate better trade deals by playing hardball. But with higher prices around the corner, shrinking growth forecasts, and uncertainty rippling through the market, critics argue this isn't liberation at all.
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