Are You Ready to Celebrate?

President Trump has proclaimed today “Liberation Day.” He says he will announce his plan for taxing imports—possibly a 20-percent tariff on all goods coming into the country—at 4 p.m.

Good Morning!

Here are today’s highlights:

• Here’s why President Trump says he’s implementing tariffs.

• Here’s a breakdown of the likely impact of President Trump’s policies on housing construction.

• March was a difficult month for manufacturers but a big one for auto sales.

• Alan Pentz explains why growth can be a trap.

INTERNATIONAL TRADE

Today’s the day: “If these taxes are as high as some reports indicate, the economic fallout could be enormous. Several media outlets and Trump's own comments suggest we could see levies as high as 20 percent across a wide range of goods. Countries are expected to retaliate. ‘Needless to say, it would result in a significant recession,’ Mark Zandi, chief economist at Moody's, tells Axios in an email. The consumer impact could be substantial. The Yale Budget Lab has estimated that a 20-percent tariff, with retaliation, could reduce the average household's purchasing power by up to $4,200.”

• “Little is actually known about what the president will announce. That uncertainty has crushed sentiment among companies and consumers, which could signal a downturn in spending and growth, though those hard data haven't yet come through.”

• “In the meantime, there's been a lot of prognosticating. Zandi has one of the more striking projections. He sent Axios some back-of-the-envelope numbers, estimating that unemployment would rise to 5.5 percent by the end of 2025 and climb above 7 percent by 2027. (The unemployment rate sits at 4.1 percent.)” READ MORE

This is why President Trump favor tariffs: “Trump has praised import duties — calling tariffs a ‘beautiful word’ — and has suggested they can help raise public revenue, promote American products and jobs, and serve as a bargaining chip to extract concessions from other countries.” Here are some of the comments he’s made:

• “‘They’re about protecting the soul of our country,’ Trump said during an address to Congress in early March. ‘Tariffs are about making America rich again and making America great again.’”

• “‘American businesses will no longer prop up failed foreign economies through extortive fines and taxes,’ one White House memorandum from February said.”

• “‘We just want to protect our businesses and our people. And they will come because they won’t have to pay tariffs if they build in America,’ Trump said during the March address.”

• “Millions of people flowed into our country through Mexico and Canada. And we’re not going to allow that,’ Trump said in February remarks to reporters. ‘This is going to be what pays down the $36 trillion in debt and all the other things,’ he said later that month.” READ MORE