President Donald Trump is scheduled to announce significant tariffs on other countries in a speech Wednesday afternoon at the White House.

Mr. Trump insists that these actions are his way of standing up for farmers and ranchers. Other nations such as Japan, China and India have charged higher tariffs than the U.S. for importing American farm goods.

Donald Trump has dubbed Wednesday April 2, 2025, "Liberation Day." What is it, and how does it apply to tariffs in the United States?

But at the heart of the decision-making is Trump himself — who has agitated for tough tariffs for more than 40 years.

President Donald Trump‘s administration swatted down suggestions that his proposed “Liberation Day,” when sweeping tariffs will be unveiled on Wednesday, would lead to a depressed stock market and increased prices for the public.

President Donald Trump is expected to unveil his Liberation Day tariff plan in the White House's Rose Garden Wednesday in an effort to end decades-long reliance on goods made overseas.

Per an Axios breakdown: "The formula is to divide the U.S. trade deficit with each country by that country's exports to the U.S. The final reciprocal tariff was then divided by 2, with a minimum of 10% (which applies even to those countries with which the U.S. has a trade surplus)."

It comes as the president recently announced a 25% tariff on imported vehicles and some auto parts among other tariffs.

The Trump administration took that formula’s figure, -0.5 for South Korea, and divided it by two to calculate the U.S. “discounted reciprocal” tariff rate. So, while South Korea imposes an effective tariff rate of .79 percent on U.S. goods, the reciprocal tariff rate the U.S. is imposing on South Korea is 25 percent.