With just a day left before President Donald Trump’s latest tariffs take effect, concerns are mounting over their potential impact on the economy.

The White House has confirmed that these tariffs, which mark Trump’s most aggressive trade move yet, will be implemented immediately following a formal announcement at 4 p.m. ET on Wednesday.

Despite uncertainties surrounding the specifics, the scale of the tariffs is expected to surpass anything seen in recent history. Trump, who has frequently used tariffs as a tool to address trade imbalances and economic issues, signaled on Monday that he had finalized his plan.

His statement reportedly caught some White House officials off guard, as internal discussions about the details were still ongoing.

A significant point of contention remains whether the tariffs will be applied universally or targeted at specific countries. Some reports suggest that tariffs could reach as high as 20% on all imports, a move that would far exceed previous trade policies.

The potential consequences of such a decision have sparked concern among economists, business leaders, and investors alike.

Moody’s Analytics has projected that a 20% universal tariff, if met with retaliatory actions from trading partners, could lead to severe economic repercussions.

Their analysis estimates that such a scenario would result in the loss of 5.5 million jobs, a rise in the unemployment rate to 7%, and a 1.7% decline in GDP from peak to trough.

The risk of a full-blown recession has heightened as financial analysts warn of significant market disruptions.

The unprecedented nature of these tariffs has drawn comparisons to protectionist policies from more than a century ago. While previous administrations have implemented tariffs on specific goods such as steel and tires, the scale of Trump’s latest initiative is far more extensive.

Experts have likened it to the trade policies of President William McKinley in the 1890s, who raised import taxes to around 50%.

Among the potential strategies for implementation is a plan proposed by Treasury Secretary Scott Bessent, which would focus initial tariff actions on the 15 nations with the largest trade deficits with the United States.

However, Trump has dismissed that approach, advocating instead for a more sweeping measure that applies tariffs broadly across all trading partners.

Should this policy move forward as envisioned, it would impact approximately $3.3 trillion worth of imported goods, a tenfold increase from the tariffs enacted during Trump’s first term.

The administration has already taken aggressive steps in recent months, including increasing tariffs on Chinese goods by 20%, imposing 25% tariffs on Canada and Mexico, and raising duties on steel and aluminum.

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These measures have already had noticeable economic effects. Inflation expectations have surged, consumer confidence has dipped, and fears of rising unemployment have spread. Financial markets have responded with volatility, as investors scramble to assess the potential fallout from the escalating trade war.

Economic strategists warn that an overreliance on tariffs could have unintended consequences, stifling growth and pushing the country toward stagflation—a period of high inflation coupled with stagnant economic growth.

Goldman Sachs has adjusted its recession risk forecast, increasing the likelihood of an economic downturn in the next 12 months from 20% to 35%.

Despite growing alarm, Trump appears undeterred. Throughout his political career, he has championed tariffs as a means of strengthening the U.S. economy.

However, businesses and trade experts argue that such policies could ultimately backfire, leading to higher costs for consumers and weaker economic performance.

As the official announcement approaches, economists and policymakers will be watching closely to determine the full scope of the tariffs and their long-term implications.

The coming weeks could prove critical in shaping the future of U.S. trade relations and economic stability.

Reported by CNN