As the April 2 deadline approaches, investors and policymakers are closely watching whether the Trump administration will move forward with a new wave of broad US tariffs. These proposed measures could impact global trade and key industries, sparking significant market volatility and geopolitical tension.

April 2 Tariffs Could Hit Global Markets

According to reports, retaliatory duties may be imposed on imports from nearly every country, while separate industry-specific tariffs could target sectors such as semiconductors, automotive manufacturing, and pharmaceuticals.

Earlier this month, the White House signaled a strong likelihood that the Trump tariffs would be enacted on April 2. However, Treasury Secretary Scott Bessent hinted that certain countries may still be able to negotiate exemptions to avoid the new trade taxes.

Background: Steel and Aluminum Tariffs Spark Global Response

These latest developments follow Trump’s earlier decision to impose a 25% tariff on steel and aluminum imports, which triggered strong backlash from key trading partners including the European Union and Canada.

The EU has proposed a €26 billion package of counter-tariffs and last week delayed the first round of duties — which would have significantly affected US exports such as American whiskey — in hopes of reaching a deal with the administration.

Raymond James: Full Tariff Implementation Unlikely

In a client note published Thursday, Raymond James analysts expressed skepticism that all proposed April 2 tariffs will be implemented as planned.

“We’ve consistently highlighted the legal and logistical challenges of launching all tariffs by April 2,” the note reads. “Recent conversations with policy experts support our view.”

Instead, analysts expect retaliatory tariffs will likely be limited to a smaller group of nations, including China, Mexico, Vietnam, Germany, Ireland, Japan, South Korea, Canada, India, Italy, Switzerland, Malaysia, and others.

Regarding the sector-specific tariffs, Raymond James believes they are unlikely to go into effect on April 2. Rather, the administration may launch targeted trade investigations into the affected industries.

“The uncertainty is driven by internal debate within the Trump administration and the fact that President Trump has the final say. He could change direction at any time. Legal concerns over different approaches also affect the timing and scope of these measures,” analysts noted.

Economic Impact: Uncertainty Weighs on Markets

The unpredictable nature of the Trump tariff policy, with sudden shifts and last-minute delays, has added to investor uncertainty. Economists warn that broad-based tariffs could reignite inflationary pressures and dampen economic growth.

Concerns over trade have already led to a stock market pullback, temporarily pushing the S&P 500 into correction territory — typically defined as a drop of 10% or more from a recent high.

While some stabilization has occurred in recent days, Barclays analysts warn that concerns over the April 2 tariff plans may limit any sustained recovery.

“Since Trump has branded April 2 as ‘Liberation Day,’ the risk of a broad 25% tariff package should not be underestimated,” Barclays wrote in a Friday research note.