Trump's tariff plans not finalised yet, team still debating size of new levies

President Donald Trump’s plans to apply reciprocal tariffs are nearing completion, with his staff still finalising the scale and extent of the additional charges he is expected to announce on Wednesday afternoon.

Trump’s staff continued to debate their choices in meetings on Tuesday, ahead of a Rose Garden ceremony scheduled to begin after US markets close at 4 p.m. on Wednesday, according to sources familiar with the ongoing discussions. According to these sources, who spoke on condition of anonymity, the White House has not made a clear decision on its tariff strategy, despite Trump’s previous statement that he had “settled” on an approach.

Numerous options are reportedly being considered, such as a more individualised reciprocal scheme and a tiered tariff structure with a set of flat tariffs for different nations.

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Under the first alternative, countries’ goods would incur levies of 10% or 20%, based on their tariff and non-tariff barriers to US exports.

Speculation ran high in Washington and on Wall Street on Tuesday, with less than 24 hours until Trump’s announcement, as companies, governments, and lobbyists working to influence the president’s agenda sought final details.

The Wall Street Journal reported that Trump’s advisers were considering a more targeted approach, while Fox News said on Tuesday that Trump was still deliberating on a flat 20% worldwide tariff.

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Treasury Secretary Scott Bessent informed legislators that the tariffs would be capped at the highest levels possible, with countries able to take measures to reduce prices, according to Oklahoma Republican Representative Kevin Hern.

Earlier on Tuesday, White House Press Secretary Karoline Leavitt stated that the tariffs would take effect immediately but that Trump remained open to further negotiations.

Despite the speculation, the White House did not provide any details about Trump’s proposal on Tuesday, ahead of the president’s formal statement.

Under the two-tiered system, the highest levies would be imposed on countries deemed the worst offenders, both in terms of actual tariffs and measurable non-tariff barriers designed to deter US imports. This week, Trump’s White House criticised trade policies in the EU, Japan, India, and Canada, among others.

Another approach would be for the US to impose individualised reciprocal rates tailored to each country’s existing tariffs and non-tariff barriers. This strategy has been openly signalled for weeks, but recent discussions suggest it is no longer the primary focus.

There is also speculation about a return to Trump’s original proposal: a flat worldwide tariff that would apply equally to billions of dollars’ worth of goods. The Wall Street Journal also reported that Trump was considering a more targeted strategy, imposing a tax of less than 20% on a smaller number of countries.

Regardless of the final approach Trump chooses, the levies may apply broadly, including to countries with which the US does not have a trade imbalance, and they are expected to be among the largest new import taxes in US history.

They would also create an opportunity for fresh negotiations with nations, many of which have already engaged with administration officials ahead of the announcement, suggesting that new trade agreements could lead to fluctuating rates in the coming weeks and months.

Nevertheless, additional tariffs could be implemented swiftly, potentially affecting shipments already en route to the United States.

While the White House stated that duties would take effect immediately, it is most likely that they will be enforced at 12:01 a.m. New York time on Thursday, coinciding with the scheduled introduction of additional taxes on vehicle imports. The government has previously delayed the implementation of tariffs on Chinese, Mexican, and Canadian imports due to logistical concerns, and similar issues may arise again.