What to Watch for on “Liberation Day.”

The White House will be making new tariff announcements tomorrow, which the President has dubbed “Liberation Day.”  His announcements will center around reciprocal tariffs (which is somewhat unclear as to both the full target list and the process for implementation - a complex process by anyone’s analysis).  However, new announcements could reach beyond these reciprocal tariffs and seek to add to tariffs for countries like Canada and Mexico.

These announcements will come as the landscape around tariffs is causing some concern among Republicans.  Senator Johnson (R-WI) was quoted saying “I don’t know what his strategy is, but you look at what the market’s reaction is — I have a similar kind of reaction. I’m concerned.”  Others, including strong allies of the President, have made similar statements. 

Additionally, a resolution will be on the Senate floor today to seek to unwind current tariffs on Canada (by removing the underlying emergency declaration), which could very well attract Republican votes. While there is no expectation that this will prompt White House action, it will likely cause some discomfort among policymakers.  

Republican policymakers are watching Wednesday’s announcements closely as well as any impacts on markets and polling - neither of which have been friendly to tariff announcements.