Trump's tariffs risk a global trade war, as leaders plan next steps

This live blog has closed. Read CNBC's latest coverage of President Donald Trump's tariffs and their global impact.

The latest U.S. tariffs could cost the Polish economy 0.4% of gross domestic product or roughly 10 billion zlotys ($2.64 billion), according to a preliminary estimate shared by Polish Prime Minister Donald Tusk.

"A severe and unpleasant blow, because it comes from the closest ally, but we will survive it. Our friendship must also survive this test," he said in a Google-translated post on the X social media platform.

As a member of the European Union, Poland was hit with 20% of reciprocal levies under White House leader Donald Trump's latest set of levies disclosed on Wednesday, which have weighed on markets and dismayed the U.S.' trade counterparts.

The International Monetary Fund most recently assessed that the economy of Poland, which has historically maintained close relations with the U.S., would expand by 3.5% this year.

— Ruxandra Iordache

Thailand's economic growth could be stunted to the tune of losing 1 percentage point because of the latest U.S. tariffs, Finance Minister Pichai Chunhavajira told reporters on Thursday, according to Reuters.

The International Monetary Fund most recently estimated that the gross domestic product of the country of 70 million people was due to expand by 2.9% this year.

Thailand was slapped with 36% in reciprocal duties, according to a chart shared by U.S. President Donald Trump on Wednesday.

Chunhavajira added that Bangkok will hike imports of U.S. goods and remove tariffs on certain U.S. products, among other steps taken to sustain exports. Thai exports to the U.S. amounted to $55.11 billion in 2024.

— Ruxandra Iordache

Pharmaceutical companies breathed a sigh of relief Wednesday after U.S. President Donald Trump revealed that they would not be subject to reciprocal tariffs — but that reprieve could prove fleeting as the White House moves ahead with plans for the sector.

The Trump administration is considering launching a so-called 232 investigation into pharmaceuticals, among other industries, which could lead to import duties under the Trade Expansion Act, Bloomberg cited a senior administration official as saying on Wednesday.

The White House did not immediately respond to CNBC's request for confirmation.

"The pharmaceutical companies are going to come roaring back, they are coming roaring back, they are all coming back to our country because if they don't they got a big tax to pay. And if they do, I'll be very happy," Trump said during his "Liberation Day" tariff announcement.

Read the full story here.

— Karen Gilchrist

India's Department of Commerce is "carefully examining the implications" and opportunities resulting from President Trump's broad tariffs announced on Wednesday, it said on Thursday.

The department said that the additional U.S. duties on India come to 27%. A list of reciprocal tariffs shared by Trump on his Truth Social media platform outlined a 26% levy imposed on the world's fifth largest economy.

Following on Indian Prime Minister Shri Narendra Modi and Trump's February agreement to more than double the bilateral trade to $500 billion by 2030, "discussions are ongoing between Indian and U.S. trade teams for the expeditious conclusion of a mutually beneficial, multi-sectoral Bilateral Trade Agreement," the Department of Commerce said.

— Ruxandra Iordache

U.S. President Donald Trump will "buckle under pressure" and alter his tariff policies if Europe bands together, acting German economy minister Robert Habeck said Thursday.

"That is what I see, that Donald Trump will buckle under pressure, that he corrects his announcements under pressure, but the logical consequence is that he then also needs to feel the pressure," he said during a press conference, according to a CNBC translation.

"And this pressure now needs to be unfolded, from Germany, from Europe in the alliance with other countries, and then we will see who is the stronger one in this arm wrestle," Habeck said.

Germany is widely regarded as one of the countries likely to be most impacted by Trump's tariffs, given its heavy economic reliance on trade.

Read the full story here.

— Sophie Kiderlin

U.S. tariff policies announced Wednesday would see U.S. gross domestic product take a 10% hit in the second quarter of 2025, High Frequency Economics Chief Economist Carl Weinberg said in a note Thursday, potentially pushing the world's largest economy into a recession after a predicted small contraction in the first quarter.

Weinberg estimated that tariffs would take $741 billion out of U.S. household real incomes or corporate profits, or more if fully accounting for all tariffs on aluminum, steel and non-exempt trade with Canada and Mexico. His calculation of an average tariff rate on two-dozen countries of at least 30% is greater than expected, he said.

The U.S. economy will also be hit by price rises, Weinberg added, with the rate of an imported item such as softwood lumber higher by up to 25% — even if some of the inflationary impact is cushioned by downward pressure on the economy.

— Jenni Reid

Greek Finance Minister Kyriakos Pierrakakis said fresh U.S. tariffs represent a historic shift toward protectionism and a deviation from how the European Union sees economic and social progress.

"As a country, we are in favour of free trade," he said in a statement, reported by Reuters Thursday. "We hope that this chapter will last as little as possible."

— Holly Ellyatt

South Africa seeks to negotiate a new "bilateral and mutually beneficial trade agreement" after being struck with 30% tariffs by the U.S. administration under Donald Trump's extensive levy campaign announced on Wednesday.

"The tariffs affirm the urgency to negotiate a new bilateral and mutually beneficial trade agreement with the U.S., as an essential step to secure long-term trade certainty," South Africa's presidency noted on Thursday, expressing "concern" over the newly imposed duties.

The African country has previously expressed willingness to meet with Washington to discuss the U.S. administration's separate 25% tariffs on automobile imports. South African vehicle exports to the U.S. top $2 billion, according to Reuters.

— Ruxandra Iordache

U.K. Prime Minister Keir Starmer told business leaders in Downing Street on Thursday that while President Donald Trump had a "mandate" and right to act in the interests of his country, the U.K. had a right to respond.

Still, he called for "cool heads" as he said that Britain would "move now to the next phase of our plan."

"Decisions we take in the coming days and weeks, will be guided only by our national interest. In the interest of our economy. In the interests of the businesses around this table," he said at a meeting in his official office in No. 10 Downing Street, London.

"Clearly, there will be an economic impact from the decisions the U.S. has taken both here and globally.  But I want to be crystal clear - we are prepared," he said.

The U.K. has "a fair and balanced trade relationship with the U.S." he noted after the White House imposed a baseline 10% duty on U.K. imports to the United States, reflecting the trading status of the relationship.

Starmer said talks on an "economic prosperity deal" would continue but said he would only strike a deal if it is in the national interest.

"Our intention remains to secure a deal but nothing is off the table" he remarked, saying Britain had "a range of levers at our disposal," without going in to further detail.

Read more on the story here:UK escapes worst of Trump's tariff wrath with 10% levy but warns of 'threat' to global economy

— Holly Ellyatt

The White House on Wednesday listed tariff rates for 180 countries that, in most cases, were roughly half of what the Trump administration claims each country has "charged" the U.S.

It didn't take long for market observers to try and reverse engineer the formula — to confusing results.

Many observers said the U.S. appeared to have divided the trade deficit by imports from a given country to arrive at tariff rates for individual countries.

Such methodology does not necessarily align with the conventional approach to calculate tariffs and would imply the U.S. would have only looked at the trade deficit in goods and ignored trade in services.

The U.S. also appeared to have applied a 10% levy for regions where it is running a trade surplus.

The Office of the U.S. Trade Representative has since laid out its approach, including a formula, on its website that appeared somewhat similar to the online chatter, barring a few differences.

Read the full story here.

— Neelabh Chaturvedi, Asriel Chua

Italian Prime Minister Giorgia Meloni said the 20% tariff imposed on the European Union by the White House was "wrong" but said the bloc should try to avert a trade war.

"The tariffs are wrong and not in the interest of either party," Meloni said, Dow Jones reported Thursday. "We will do everything we can to work on an agreement with the U.S., with the aim of averting a trade war that would inevitably weaken the West in favor of other global players," the premier reportedly added.

On Wednesday, she told business leaders involved in Italy's food and drinks industry that the EU may need to adopt "appropriate responses" to U.S. President Donald Trump's tariffs while stressing that a trade war should be avoided, if possible.

The EU should "work in every possible way to avert a trade war, which would not benefit anyone, neither the United States nor Europe," she said, Italian news agency ANSA reported.

"This obviously does not rule out having to contemplate appropriate responses to defend our production, if necessary," she noted.

The prime minister warned that Italian food and drink exports could be hit hard by tariffs, noting that "Italian agri-food products are in demand all over the world, starting of course with Europe."

"It must be remembered that the United States is the second-largest destination market, with exports rising by 17% in 2024. The U.S. market is fundamental for us."

— Holly Ellyatt

Europe's Stoxx 600 index was 1.6% lower shortly after the market open early on Thursday, as traders assessed the scope and impact of U.S. tariffs.

Banks on the index were down 3.2% at 8:10 a.m. U.K. time, while technology stocks fell 2.6%.

A range of European companies expected to be hit by the measures declined sharply, with German retailers Puma and Adidas down 9% and 8.6%, respectively. Swedish automaker Volvo Cars was down 9%, and shipping giant Maersk — viewed as a barometer for global trade — shed 7.4%.

— Jenni Reid

U.K. Business Secretary Jonathan Reynolds said the country faces a "threat" to its open economy from any global fallout from Trump's new tariffs regime, which included a baseline 10% "reciprocal" tariff on British goods exported to the States.

The U.K. has escaped relatively unscathed compared to many other nations, facing the lowest trade tariff that President Trump announced Wednesday thanks to its largely balanced trade in goods with the States.

Trade deficits that the U.S. runs with many trading partners were used in large part by the White House to calculate which level of tariff should be imposed on specific countries or territories.

Recognizing the U.K. was in a better position than many countries, Reynolds nonetheless said Britain was vulnerable to turmoil in other parts of the world hit with higher tariffs, such as the EU which will see a 20% levy on its goods exports to the U.S.

"Anything that disrupts the global trading system is a threat to the U.K. because we are a much more globally orientated trading economy than some partners," Jonathan Reynolds told Times Radio on Thursday, according to Reuters

He said the government would continue work to strike a trade deal with the Trump administration and would hope to get tariffs reversed. He didn't rule out counter-measures "if we need to."

— Holly Ellyatt

Spain is prepared to take action and protect its companies and consumers from the impact of sweeping tariffs freshly announced by U.S. President Donald Trump's administration, Spanish Economy Minister Carlos Cuerpo said Thursday.

He added that Madrid remains eager to negotiate with the White House, but criticized the new U.S. measures — which involve 20% tariffs against the European Union, to which Spain is a member — as "unfair and unjustified," according to Reuters reporting.

— Ruxandra Iordache

The French government slammed U.S. President Donald Trump on Thursday, with one official saying his slew of fresh tariffs reflected an "imperialist posture" toward the rest of the world.

Trump is behaving as if he's "master of the world," French government spokesperson Sophie Primas told RTL Radio, according to comments reported and translated by Reuters. Primas said the EU was likely to issue countermeasures initially in mid-April and then again in late April.

Trump on Wednesday announced a blanket 20% tariff on all goods imported from the EU, purporting that the new tariff was roughly half of what the EU "charged" the United States.

Trump said Wednesday that the U.S. would charge trading partners "approximately half of what they are and have been charging us," noting "so, the tariffs will be not a full reciprocal."

That halved figure includes "the combined rate of all their tariffs, nonmonetary barriers and other forms of cheating," he said. The EU denies unfair trading practices with the U.S., though it has a long-standing trade surplus with the States. Trade deficits have been taken into account by the White House when calculating the "reciprocal tariffs" it would impose on other nations.

— Holly Ellyatt

Norway will try to negotiate with the U.S. regarding tariffs, Prime Minister Jonas Gahr Støre told public broadcaster NRK on Thursday.

U.S. President Donald Trump announced on Wednesday that Norway would face a 15% duty on goods it exports to the States. The levy is lower than that placed on many other countries but Norway's leader said it could be very damaging for his country, "which has a lot of exports and lives off exports."

"This is bad news, it is serious," Støre told NRK, adding that "it will have consequences for many Norwegian companies and for jobs."

"If the opportunity to negotiate arises, we will definitely put our foot in the door and stand up for Norwegian interests," he added, in Google-translated comments.

— Holly Ellyatt

The Monetary Authority of Singapore said it was ready to curb excessive volatility in the Singapore dollar, following the market turmoil after the reciprocal tariffs announcement from the U.S.

In a statement, the MAS said it will also ensure that Singapore's foreign exchange and money markets continue to function in an orderly manner.

"MAS is closely monitoring developments and assessing the implications for the Singapore economy."

 — Lim Hui Jie

Malaysian government said in a statement Thursday that it is not considering reciprocal tariffs after U.S. President Donald Trump unleashed sweeping levies.

The Ministry of Investment, Trade & Industry said it is actively engaging with U.S. policymakers to seek solutions that will "uphold the spirit of free and fair trade."

Trump set a baseline 10% tariff on all exporters to the U.S. starting April 5, which is set to be levied on Malaysian goods.

The Southeast Asian country recorded a trade surplus of $24.8 billion with the U.S. last year, the ministry said, attributing the deficit in part to U.S. firms operating in Malaysia.

— Anniek Bao

Norway will try to negotiate with the U.S. regarding tariffs, Prime Minister Jonas Gahr Støre told public broadcaster NRK on Thursday.

U.S. President Donald Trump announced on Wednesday that Norway would face a 15% duty on goods it exports to the States. The levy is lower than that placed on many other countries but Norway's leader said it could be very damaging for his country, "which has a lot of exports and lives off exports."

"This is bad news, it is serious," Støre told NRK, adding that "it will have consequences for many Norwegian companies and for jobs."

"If the opportunity to negotiate arises, we will definitely put our foot in the door and stand up for Norwegian interests," he added, in Google-translated comments.

— Holly Ellyatt

South Korea's acting President Han Duck-soo on Thursday ordered emergency support measures for industries and businesses that will be impacted by Trump's sweeping tariffs, according to a statement from the Ministry of Trade, Industry and Energy.

Han urged the ministry to closely analyze the details and impact of the U.S. "reciprocal" tariffs and actively negotiate with Washington to minimize the impact of tariffs.

Separately, Australian Prime Minister Anthony Albanese told reporters at a press conference that Trump's decision is "not the act of a friend," while ruling out responding with counter-levies against the U.S.

— Anniek Bao

Canadian Prime Minister Mark Carney said Ottawa will unveil on Thursday a full set of "countermeasures" in response to U.S. President Donald Trump's sweeping new tariffs.

"We are gonna fight these tariffs with purpose and with force," he told reporters ahead of a cabinet meeting to discuss Canada's response.

The U.S. Senate just passed legislation that would terminate new tariffs on Canada, shortly after Trump unveiled a raft of duties on foreign goods against global major trade partners.

— Anniek Bao

China's Ministry of Commerce urged the U.S. to "immediately cancel" its unilateral tariff measures and vowed to take "resolute counter-measures" to safeguard its own rights and interests, after U.S. President Donald Trump unveiled what analysts described as the steepest tariff hikes in a century.

The Chinese official described the Trump administration's decision to impose reciprocal tariffs as a "typical unilateral bullying practice," adding that many countries have expressed "strong dissatisfaction and clear opposition."

Separately, the European Union is preparing further countermeasures against U.S. tariffs if negotiations fail, according to European Commission President Ursula von der Leyen.

Speaking on a livestreamed broadcast, the EC president said that Trump's move was a "major blow" to the world economy. "There seems to be no order in the disorder, no clear path to the complexity and chaos that is being created as all U.S. trading partners are hit," von der Leyen said.

— Anniek Bao, Lim Hui Jie, Sophie Kiderlin

Trump's 25% tariffs on imported vehicles to the U.S. have taken effect.

Announced last week, the levies will be imposed on any vehicles that are not assembled in the U.S.

The auto industry is awaiting more clarity on potential upcoming tariffs on some auto parts such as engines and transmissions.

Even if vehicles are produced in the U.S. — meaning the final assembly takes place in the country — the tens of thousands of parts for new cars and trucks come from a global supply chain.

— Michael Wayland and Michele Luhn

President Donald Trump on Wednesday signed an executive order shutting the de minimis trade loophole, effective May 2.

Trump in February abruptly ended the de minimis trade exemption, which allows shipments worth less than $800 to enter the U.S. duty-free. Within days, Trump reversed course and delayed the cancellation of the provision.

Goods that qualify under the de minimis exemption will be subject to a duty of either 30% of their value, or $25 per item. That rate will increase to $50 per item on June 1, the White House said.

The U.S. Customs and Border Protection has said it processed more than 1.3 billion de minimis shipments in 2024, up from over 1 billion shipments in 2023.

Shares in PDD Holdings, parent company of the Chinese online marketplace Temu, dropped 8.45% in after-hours trading.

— Annie Palmer

Canadian Prime Minister Mark Carney said Ottawa will unveil on Thursday a full set of "countermeasures" in response to U.S. President Donald Trump's sweeping new tariffs.

"We are gonna fight these tariffs with purpose and with force," he told reporters ahead of a cabinet meeting to discuss Canada's response.

The U.S. Senate just passed legislation that would terminate new tariffs on Canada, shortly after Trump unveiled a raft of duties on foreign goods against global major trade partners.

— Anniek Bao

South Korea's acting President Han Duck-soo on Thursday ordered emergency support measures for industries and businesses that will be impacted by Trump's sweeping tariffs, according to a statement from the Ministry of Trade, Industry and Energy.

Han urged the ministry to closely analyze the details and impact of the U.S. "reciprocal" tariffs and actively negotiate with Washington to minimize the impact of tariffs.

Separately, Australian Prime Minister Anthony Albanese told reporters at a press conference that Trump's decision is "not the act of a friend," while ruling out responding with counter-levies against the U.S.

— Anniek Bao

Four Senate Republicans joined every Democrat today to pass a resolution that would terminate Trump's Canada tariffs.

The measure, introduced by Sen. Tim Kaine (D-Va.), passed with a simple majority, 51-48.

The Republicans who crossed party lines to back it were Sens. Mitch McConnell (Ky.), Lisa Murkowski (Ak.), Susan Collins (Me.) and Rand Paul (Ky.)

The resolution would terminate the national emergency that Trump used as a legal rationale earlier this year for imposing tariffs on Canada.

The Republicans' votes were largely symbolic, given that the measure is dead on arrival in the GOP-majority House of Representatives.

But coming, as it did, just hours after Trump had unveiled a sweeping tariff plan, the vote was a bipartisan rebuke of the president's trade policy by the U.S. Senate.

— Erin Doherty

Stock futures fell steeply after Trump's announcement today, reflecting what CNBC's Jim Cramer described as the potentially "horrendous" effects of Trump's new tariffs on equities markets.

Futures tied to the Dow Jones Industrial Average lost 1,007 points, or 2.3%. S&P 500 futures dropped 3.4%. Nasdaq-100 futures lost 4.2%.

Shares of multinational companies tumbled in extended trading. Nike and Apple each dropped about 7%. Shares of big sellers of imported goods were among the hardest hit. Five Below lost 15%, Dollar Tree tumbled 11% and Gap plunged 8.5%. Tech shares dropped in an overall risk-off mood, with Nvidia off 4.5% and Tesla down 6%.

— John Melloy and Pia Singh

President Donald Trump and the White House laid out the U.S. reciprocal tariff rates that more than 180 countries and territories will face under his sweeping new trade policy.

In charts posted on social media, the White House shows the effective tariff rates they claim other countries impose on American goods, including by "currency manipulation and trade barriers."

An adjacent column shows the new tariff rates the U.S. will impose on each country or territory, including the European Union. The reciprocal rates are not necessarily the only U.S. tariffs these countries will face.

Trump held up the chart when he unveiled his tariff policy in the White House Rose Garden.

See the full list here.

— Kevin Breuninger

In addition to the sweeping country-by-country tariffs announced today, Trump also imposed a 10% baseline tariff that effectively ensures a tariff on any country that is not among the more than 180 singled out.

"All articles imported into the customs territory of the United States shall be, consistent with law, subject to an additional ad valorem rate of duty of 10%," unless otherwise noted, the executive order signed this afternoon reads.

Trump also reserves the right to raise this baseline rate "should U.S. manufacturing capacity and output continue to worsen."

Read the whole executive order here.

— Erin Doherty

Pharmaceutical products are among the goods that will not be subject to the reciprocal tariffs announced today, according to a White House fact sheet. 

But Trump has not ruled out his plans to impose pharmaceutical-specific tariffs sometime soon. 

Other goods not subject to the reciprocal tariffs include copper, semiconductors, lumber, bullion, energy and certain minerals that are not available in the U.S., the fact sheet said. It also includes products already subject to Trump's recently announced tariffs, including steel, aluminum, autos and auto parts. 

— Annika Kim Constantino

Iowa Gov. Kim Reynolds says she is "working directly with the administration to ease the short-term impact" of the tariffs on her state, to "keep our ag economy strong, and open the door to new export opportunities."

Reynolds is a Republican in a state that is especially sensitive to the sweeping tariffs Trump announced this afternoon.

"President Trump is using tariffs as leverage — to force our trading partners to the table and put America's farmers first," Reynolds said in a statement after Trump's announcement.

Reynolds also criticized the Biden administration, which she said "consistently ignored the needs of Iowa farmers."

— Erin Doherty

Trump is imposing a 54% total tariff rate on imports from China, effective April 9, a White House official said.

Chinese imports had already been subject to 20% tariffs. Another 34% in reciprocal tariffs is being put on top of that, the official said.

— Dan Mangan and Eamon Javers

Trump finished speaking after roughly 50 minutes and signed an executive order imposing his sweeping reciprocal tariff plan.

"It's going to be a day that hopefully you're going to look back in years to come and you're going to say, 'You know, he was right. This has turned out to be one of the most important days in the history of our country,'" Trump said.

— Kevin Breuninger

The Trump administration announced Wednesday that Canada and Mexico will be exempt from the baseline 10% tariff rate, as well as reciprocal levies for specific countries for now.

The 10% tariff would only kick in when the original 25% duties Trump slapped on Canadian and Mexican imports are terminated or suspended. The 25% tariff was based on allegations that the neighboring countries were failing to stem the flow of drugs and crime into the U.S.

— Yun Li

Exchange-traded funds tied to major U.S. stock indexes fell sharply in after-hours trading Wednesday after President Trump imposed sweeping tariffs on goods imported to the U.S.

The SPDR S&P 500 ETF Trust (SPY)tumbled 2.2%. The Invesco QQQ Trust, which tracks the Nasdaq-100, dropped 3%.

The White House unveiled a baseline tariff rate of 10% on all countries that goes into effect April 5. Higher duties will be charged against countries that levy higher rates on the U.S.

"We will charge them approximately half of what they are and have been charging us," Trump said in a press conference from the White House Rose Garden. "So, the tariffs will be not a full reciprocal."

— Fred Imbert, Pia Singh

Trump showed off a big league chart outlining the reciprocal tariffs he is imposing on various countries.

The chart, featuring countries such as China, Vietnam, Japan, India and Switzerland, as well as the European Union, compares the tariffs and other trade costs Trump says those nations place on U.S. imports, with the reciprocal tariffs taking effect.

— Dan Mangan

Trump called out Australia, saying, "they're wonderful people and wonderful everything, but they ban American beef." "Yet, we imported $3 billion of Australian beef from them just last year alone. They won't take any of our beef."

"They don't want it because they don't want it to affect their farmers and you know what, I don't blame them, but we're doing the same thing, right now starting about midnight tonight."

— Erin Doherty

"We will charge them approximately half of what they are and have been charging us," Trump said of his reciprocal tariff plan.

"So, the tariffs will be not a full reciprocal," he said.

But that halved figure includes "the combined rate of all their tariffs, nonmonetary barriers and other forms of cheating," he said.

— Kevin Breuninger

Trump is promising what he calls "the Golden Age of America," which he believes will see more jobs and domestic production ushering in a new age of domestic prosperity.

"We will supercharge our domestic industrial base, we will open foreign markets and break down foreign trade barriers," Trump said from the Rose Garden.

"And ultimately more production at home will mean stronger competition and lower prices for consumers. … We're gonna come back very strongly."

— Pia Singh

Trump says "jobs and factories will come roaring back" and that the reciprocal tariffs will usher in a "golden age" for the country.

"We will supercharge our domestic industrial base, we will pry open foreign markets and break down foreign trade barriers and ultimately more production at home will mean stronger competition and lower prices for consumers," he said from the Rose Garden.

— Erin Doherty

Trump confirmed his administration will impose 25% tariffs on auto imports starting Thursday at 12:01 a.m.

Trump, in his Rose Garden speech, said, "None of our companies are allowed to go into other countries."

"That's why, effective at midnight, we will impose a 25% tariff on all foreign-made automobiles," he said.

— Kevin Breuninger

Trump took the podium in the Rose Garden to tout his new tariffs, calling it America's "declaration of economic independence."

— Dan Mangan

Trump said he is about to sign a "historic executive order instituting reciprocal tariffs on countries throughout the world."

"Reciprocal. That means they do it to us and we do it to them. Very simple. Can't get any simpler than that," Trump said at the start of his remarks.

— Kevin Breuninger

Media executives have been in ongoing conversations with advertisers who are seeking flexible terms, as they face uncertainty about how impending U.S. tariffs will affect their businesses, according to people close to the discussions.

During tough economic times, companies often pull back on advertising and marketing spending. The scarcity of specifics on the new tariffs has fueled discussions between media companies and advertisers, the people said.

In most cases, brands are seeking more lenient agreements in which they could pivot quickly depending on how the tariffs shake out, they said.

Tariffs, coupled with inflation and unemployment, could tighten budgets beyond earlier expectations, said Kate Scott-Dawkins, global president of business intelligence of GroupM, WPP's media investment group.

The potential hit to the ad market shows the ripple effect of tariffs on companies that won't directly contend with heightened costs on products.

— Lillian Rizzo

Treasury Secretary Scott Bessent is attending Senate Republicans' weekly lunch today before Trump's expected tariff announcement.

The Treasury secretary's visit to Capitol Hill comes a day after he visited with House Republicans.

There, Rep. Kevin Hern, R-Okla., told CNBC that Bessent said the tariff rates being announced today would be the top rates, and will go down from here, not up.

— Erin Doherty

Rep. Josh Gottheimer, D-N.J., is warning that Trump's tariffs are "regressive" and will hit "people on things they buy every day."

"I don't think people are seeing this, including a lot of Republicans, as a day of liberation, but … a day of higher costs and a day of chaos," Gottheimer told CNBC's "The Exchange."

"Regardless where people are on the political spectrum, what they don't like is a lot of uncertainty," said Gottheimer, who is currently running for governor of New Jersey.

"I think people are hearing all this noise, they're seeing every day the news change and they just want some certainty," he added.

"They want less chaos in their lives."

— Erin Doherty

Major averages are trading modestly higher in the volatile session as investors await details about tariffs on key U.S. trading partners.

The S&P 500 last traded up 0.2% after swinging significantly between gains and losses. At its session high, the benchmark was up 1.1%. At its session low, the S&P 500 declined 1.1%.

The 30-stock Dow Jones Industrial Average rose 60 points, while the Nasdaq Composite added 0.3% as Tesla shares jumped more than 4%.

"Any 'relief' bounce is likely to be short-lived as the absolute effect of the trade agenda remains decidedly negative with downside pressure on growth/earnings and upside risks to inflation," Adam Crisafulli, founder of Vital Knowledge, said in a note.

— Yun Li

The Trump administration is adding imports of beer and empty aluminum cans to its 25% tariffs on derivative aluminum products, according to a notice posted Wednesday in the Federal Register.

The notice from the Commerce Department said the adjusted tariffs would take effect after midnight Friday.

One of the two product tariff codes referenced in the notice applies to "beer made from malt." The other applies to aluminum casks, drums, cans, boxes and similar containers with a capacity no greater than 20 liters.

The notice does not include a separate code that would encompass beer in glass containers.

The Commerce Department did not immediately respond to CNBC's request for comment.

— Kevin Breuninger

Uncertainty surrounding Trump's tariff policy has created panic for smaller businesses grappling with the likelihood of added operations costs and potential supply chain bottlenecks.

"I'm going to run out of appliances," said Robin Liss, founder of kitchen gadget company Suvie, ahead of her two-week trip to Taiwan and Vietnam to work out a new business plan. "I've got to figure this out."

Trump slapped additional tariffs on China and is threatening to strain America's relationships with other longtime trading partners.

Read the full story here.

— Samantha Subin

Mexican President Claudia Sheinbaum says she does not plan to implement tit-for-tat tariffs on American goods in response to Trump's import duties.

"It's not about tit-for-tat, but about what is best for Mexico and how to face this situation," she said during a morning press conference.

"We do not believe in an eye-for-an-eye, a tooth-for-a-tooth because that always leads to a bad situation," she said.

— Erin Doherty

The Senate is poised to vote later today on a Democratic-led resolution to undo the "national emergency" that Trump declared in order to create a legal rationale for his tariffs on Canada.

Sen. Tim Kaine, D-Va., told reporters earlier that Sen. Mitch McConnell, R-Ky., indicated that he plans to back the resolution. At least three other Republican senators — Lisa Murkowski, of Alaska, Susan Collins, of Maine, and Rand Paul, of Kentucky — have also signaled plans to support the measure.

The resolution is largely symbolic, because it still needs to move through the Republican-controlled House and would require Trump's signature to become law.

Nonetheless, Senate passage with the support of some Republicans — on the same day Trump unveils his tariff plan — would mark a rebuke to Trump's tariff policy.

— Erin Doherty

Sen. Peter Welch, D-Vt., a member of the Senate Finance Committee, is slamming Trump's tariff policies, saying that his "half-baked trade war will only raise prices for consumers."

"Trump's so-called 'liberation day' will throw the global economy into turmoil and leave Americans holding the bag," Welch says in a statement hours before the unveiling of so-called reciprocal tariffs at the White House.

"We should not impose sweeping tariffs on our allies and longtime partners in trade. America's close economic ties with our trading partners are based on trust," Welch says.

"These on-again, off-again tariffs are extremely destructive and totally unnecessary," he says. "President Trump is sticking it to our farmers, our businesses, and everyday working people."

— Kevin Breuninger

Trump has made a final decision on how he wants to proceed with his sweeping reciprocal tariff plans, a White House official told CNBC's Megan Cassella.

The update marks an apparent end to the internal deliberations that were reportedly ongoing in the hours before the Wednesday afternoon announcement event.

— Kevin Breuninger and Megan Cassella

Trump will be joined in the Rose Garden by workers from industries that are likely to be affected by his reciprocal tariffs.

The guest list includes "steel workers, autoworkers, oil and gas workers, steam fitters, truck drivers, and hardworking Americans from a variety of trades," a senior White House official told NBC News.

— Kevin Breuninger and Peter Alexander

Trump has said tariffs on pharmaceutical products imported into the U.S. were coming soon, but it is not clear if they will be announced at the White House event.

Those potential tariffs would likely drive up U.S. drug prices for patients, because even if companies moved to produce those medications domestically, it would take years and cost more than producing medicines abroad, Leerink Partners analyst David Risinger said in a note last week. 

Predicting the potential impact of tariffs on pharmaceutical companies is difficult since they have vast and complex manufacturing networks with multiple steps, sometimes in different geographies, TD Cowen analyst Steve Scala said in a note.

But Scala said Eli Lilly, Bristol Myers Squibb and AbbVie appear better positioned than others to weather tariffs because they have more major manufacturing plants in the U.S. than internationally.

The majority of their sites responsible for producing the active ingredients in drugs are also in the U.S., he added. 

Meanwhile, Novartis and Roche "look more at risk" because they have few U.S. plants and a higher share of active ingredient sites that are international, Scala said.

— Annika Kim Constantino

Some tequila makers have been warning about how tariffs could hit their businesses, but Colorado-based Suerte Tequila said it won't raise prices to offset tariffs.

"Tequila margins are stronger than ever," said Laurence Spiewak, Suerte Tequila CEO.

Still, the industry could see a hit with tariffs on Mexico.

In 2024, the U.S. imported $5.2 billion worth of tequila and $93 million worth of mezcal from Mexico, according to the Distilled Spirits Council of the U.S.

— Brandon Gomez and Michele Luhn

Trump is targeting Sen. Mitch McConnell and three other Republican senators in a critical Truth Social post, urging them to oppose a bill that would undo U.S. tariffs on Canada.

McConnell and Sen. Rand Paul, both of Kentucky; Sen. Susan Collins, of Maine, and Sen. Lisa Murkowski, of Alaska, "will hopefully get on the Republican bandwagon, for a change," Trump writes.

He presses the senators to "fight the Democrats wild and flagrant push to not penalize Canada for the sale, into our Country, of large amounts of Fentanyl, by Tariffing the value of this horrible and deadly drug in order to make it more costly to distribute and buy."

It is not immediately clear what Trump means by "tariffing the value" of fentanyl.

Trump calls the Senate bill introduced by Sen. Tim Kaine, D-Va., a "ploy" intended to "show and expose the weakness of certain Republicans, namely these four."

The president also calls on Kentucky, Alaska and Maine voters to call these senators' offices.

"They have been extremely difficult to deal with and, unbelievably disloyal to hardworking Majority Leader John Thune, and the Republican Party itself," Trump adds.

— Kevin Breuninger

Ontario Premier Doug Ford said he stands ready to remove retaliatory tariffs on U.S. products if Trump cancels heavy American import duties on Canadian goods.

"We're willing to take these tariffs off, like in the next minute, if he said he's taking their tariffs off," Ford told CNBC's "Squawk Box."

Canada has imposed 25% tariffs on more than $20 billion worth of U.S. goods in retaliation for the Trump administration's steel and aluminum duties.

In addition, Ottawa has slapped 25% counter-tariffs on $30 billion worth of U.S. goods, in response to Trump's imposition of broad-based tariffs on imports from Canada.

— Yun Li

Trump is hyping his reciprocal tariffs in a Truth Social post declaring the day of their unveiling "LIBERATION DAY IN AMERICA!"

Trump commonly refers to his tariffs in historic terms, raising expectations and concerns about how severe the duties could be.

— Kevin Breuninger

Slovakia, the landlocked country east of Austria, could suffer the most from the new auto tariffs that Trump said will start to take effect Thursday.

"Germany's car industry is in the eye of the storm and by far most exposed in terms of value, with major players like Volkswagen, BMW, Mercedes, and Porsche likely getting hit by tariffs," economists Inga Fechner and Rico Luman of Dutch bank ING said in a recent research note.

"But Slovakia — home to several car plants — is most exposed in terms of total US export volume," they said.

The nation of 5.4 million people produces more cars per capita than any other country in the world. And the "Detroit of Europe" relies heavily on U.S. trade, with autos comprising a major chunk of its U.S. exports.

— Kevin Breuninger and Sam Meredith

The U.S. stock market was poised to open lower Wednesday as Wall Street continues to struggle in the face of the looming tariff policies from the Trump administration.

The S&P 500 is now down 4.2% over the past month and is 8.4% below its record high. The tech-heavy Nasdaq Composite has dropped 7.4% over the past month and is 13.6% below its record high.

Uncertainty about tariffs is not the only reason the stock market has struggled, as some tech stocks that are thought to be relatively insulated from trade war concerns have also fallen.

Other stock moves seem to have a more direct line to concerns about tariffs and their economic impact, such as the 12% decline in the past month for Stellantis.

On the other hand, gold and Treasury bonds have both been rallying in recent days, a sign that investors may be looking to reduce risk. Gold was trading near a record high Wednesday morning.

— Jesse Pound

The scope of new tariffs has yet to be finalized by the White House, the Bloomberg news service reported.

"The White House has not reached a firm decision on their tariff plan," Bloomberg reported, citing people familiar with the plan.

Several options are under consideration at the White House. One is a universal flat tariff rate applied to all trade partners, while another would tailor tariffs to each trade partner.

A third option prepared by the U.S. Trade Representative's office would apply a flat rate to a select group of countries.

— Dan Mangan

Democratic Sen. Peter Welch of Vermont said the tariff disagreements between Trump and Democrats go beyond typical party differences, calling it a "very, very serious situation."

"We believe what President Trump is doing is, in many cases, lawless and really beyond any norms," he said on "Squawk Box."

Welch said Congress has tariff authority that can be traced back to the Constitution.

Trump's actions are an "overreach" in service of a personal agenda, he said.

"There's a real abdication by Congress of its own authority," he said.

— Laya Neelakandan

The U.S. Trade Representative's office has prepared a third option for tariffs, The Wall Street Journal reports.

This tariff structure would set a rate below 20% and apply it only to a small group of trade partners.

There are two other plans under consideration at the White House.

1. A universal flat tariff rate applied to all trade partners.
2. A different tariff rate for every trade partner that reflects what the administration views as that country's overall import barriers to U.S. goods.

Read more at The Wall Street Journal.

— Erin Doherty

1. Tariffs: How they work, who pays for them and why Trump loves them
2. The 'Dirty 15' percent of countries expected to take a harder hit from Trump's tariffs
3. Trump's tariff gambit will raise the stakes for an economy already looking fragile

— Christina Wilkie

Trump's new tariffs will take effect "immediately" after he announces them in the Rose Garden, White House press secretary Karoline Leavitt said Tuesday.

The timeline offered a morsel of clarity about the reciprocal tariff plan, which remains highly opaque just hours before it is set to be unveiled.

— Kevin Breuninger

Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum spoke on the phone in advance of looming U.S. tariffs to reaffirm their "strong trading and investment relationship," Carney's government in Ottawa said.

"With challenging times ahead," the two leaders "emphasized the importance of safeguarding North American competitiveness while respecting the sovereignty of each nation," Ottawa said in a statement after Tuesday's call.

Carney also laid out his "plan to fight unjustified trade actions against Canada" by the Trump administration.

In separate remarks to reporters Tuesday, Carney said Canada is prepared to retaliate against whatever actions the U.S. takes Wednesday.

"We have held back, but we will not disadvantage Canadian producers and Canadian workers relative to American workers," he said.

— Kevin Breuninger

Trump is about to drop a sweeping tariff policy on an economy that already seems to be showing cracks.

Several top analysts have lowered economic growth projections in recent weeks and warned of persistent inflation, dragging the term stagflation back into the conversation.

Strategists and fund managers have also recently raised the probability of a recession, a shift that stems in large part from concerns about the Trump administration's fiscal policies.

These fears coincide with a highly volatile stock market and souring sentiment from consumers and businesses alike.

— Kevin Breuninger