Trump announcing tariffs today: What are tariffs? How do tariffs work? What to know

President Donald Trump has plans later today to reveal a new slate of global tariffs in what he is calling "Liberation Day," a plan he has touted since he assumed office in January.

The president, who was in talks late Tuesday with "friends and allies" weighing his options, according to CNN, is expected to speak at 4 p.m. in the White House' Rose Garden. Presidential officials have labeled the April 2 event with the title: "Make America Wealthy Again."

The size and scope of Trump's plans to redraw new economic agreements with global trade partners is still unknown, with Trump claiming it would increase domestic jobs, while experts believe it could come at a hefty price tag for consumers.

Here's what you need to know about tariffs, reciprocal tariffs and what Trump means when he says "liberation."

What are tariffs?

Tariffs are taxes that governments impose on trade. They are primarily levied on imports, typically to protect local industries, according to scholars with the Woodrow Wilson Center.

These taxes are paid by import companies bringing the tariffed goods into the country.

How do tariffs work?

Here's an example of how a tariff would work: Scholars with the Wilson Center, in a Tariff 101 article, said to imagine a local market selling apples. The retailer can choose between locally grown or imported ones (say, Germany, one of the nation's larger apple importers). If Germany wants to sell the apples in this market, they might find their goods subjected to a tax tariff — resulting in those imported apples being more expensive than the ones in the U.S.

Essentially, tariffs make imports more expensive, which make local goods comparatively, and in the short run, more competitive, according to Wilson scholars Diego Marroquin Bitar and Valeria Moy.

Tariffs also can provide income that can be used to support local industries, fund public programs or cover government expenditures.

What are reciprocal tariffs?

Trump is expected to impose what are called reciprocal tariffs, which, when used in the context of trade, refers to a measure taken by both parties to ensure fairness in bilateral commerce.

Trump, in the concept of "reciprocal trade" pushed reciprocal tariffs in his 2023 campaign materials, pushing an "eye for an eye" approach with other countries, declaring several times he believes the U.S. has, when it comes to global trade, been treated unfairly.

What is 'Liberation Day'?

President Donald Trump has referred to April 2 as "Liberation Day" in an attempt to brand the start of a fresh set of tariffs that he says will impact "all countries." He has called the impending announcement a "big one" in a post on Truth Social, suggesting his plans may be further reaching than the import levies he has already set in motion.

The announcement is being viewed by economists as a culmination of Trump's "America First Trade Policy," an executive order he signed on his first day of office.

Lori Comstock is a New Jersey-based journalist with the Mid-Atlantic Connect Team.