Author: Bedassa Tadesse, Professor of Economics, University of Minnesota Duluth

President Donald Trump unveiled a sweeping new tariff plan on April 2, 2025, to reshape U.S. trade and boost domestic industry. Framing the announcement as “Liberation Day,” he proposed a 10% tariff on essentially all imports, with steeper rates for major trade partners, including 34% on Chinese goods and 20% on those from the European Union. Starting April 3, a 25% tariff on all foreign-made cars and auto parts will take effect – a move that he says will revive U.S. manufacturing and reset America’s trade agenda. But the fanfare surrounding the announcement masks a much larger gamble. What’s really…