US Reciprocal Tariffs Live: European markets rose ahead of Donald Trump’s tariff announcement, with FTSE up 0.6%, DAX 1.7%, and CAC 1%. While some see buying opportunities, analysts warn of potential trade war escalation as major economies prepare retaliatory measures.

According to a report in the Washington Post, people working for Trump have drafted a proposal to impose tariffs of around 20% on almost everything imported into the United States.

The report also says that Trump’s team is mulling using trillions of dollars in new import revenue for a tax dividend or refund.

The US is preparing to introduce new tariffs that President Donald Trump calls “reciprocal”—which means they will match the taxes or trade barriers other countries place on the US. However, many details are still unclear, including what exactly will happen on “Liberation Day.”

Treasury Secretary Scott Bessent confirmed that the announcement is scheduled for 3 pm ET on Tuesday (12.30 am IST on Wednesday).

A new Aston Business School study predicts a potential $1.4 trillion global loss from trade war escalation. Starting with US tariffs causing 2.7% price rises, through to worldwide retaliation, the scenarios show deepening economic damage across North America and Europe.