WASHINGTON (NewsNation) — President Donald Trump is set to announce a round of self-described “reciprocal” tariffs Wednesday, threatening to unleash a global trade war on what he has labeled “Liberation Day.”

Trump maintains that foreign companies will bear the brunt of the fees, but there are concerns that Americans will be heavily affected by the tariffs

While the details of the tariff plan are still unclear, the White House’s goals include reducing the flow of fentanyl into the U.S., leveling the playing field with both allies and adversaries, increasing government revenue, and boosting American-made manufacturing.

Among the measures is a proposed 25% tariff on foreign car parts and cars, which Trump believes will boost the U.S. auto industry.

A White House official told NewsNation that the president has instructed American auto manufacturers not to raise prices despite the potential added costs from the tariffs.

Karoline Leavitt, the White House press secretary, told NewsNation on Tuesday that Trump and his trade and tariff team were finalizing the announcement to ensure this is “the perfect deal for the American people.” She added that the tariffs would go into effect immediately.

The announcement will take place in the Rose Garden under the theme “Make America Wealthy Again,” at 4 p.m. — after the stock market closes.

Original Trump tariffs led to higher prices

Trump’s previous tariffs during his first term raised prices for American consumers but also led to increased domestic production.

In 2018, he imposed 25% tariffs on steel and aluminum imports, which were reinstated in February this year.

He also escalated tariffs on Chinese goods, which sparked a trade war with Beijing.

Although these moves helped revive certain industries, they also resulted in higher costs for consumers. The steel and aluminum tariffs, for example, boosted U.S. production but also led to higher prices for goods, and ultimately, production declined.

Former President Joe Biden maintained the tariffs on China and increased some of them, further contributing to price hikes for American households.

In 2019, the New York Federal Reserve estimated that the trade war with China cost an average American household over $830 each year.

When questioned about the impact of tariffs, a White House official pointed to recent investments from South Korea, Japan, and Qatar in U.S. industries. This is part of the broader aim of Trump’s upcoming tariff announcement on Wednesday.