This coming Wednesday, April 2, the global economy could take a lasting turn for the worse.
American investors and civilians alike have been sweating the ongoing threat of tariffs for more than a month now. And next week could hold the most impactful tariff announcement of all…
If the U.S. and its trading partners walk away from the negotiating table without securing many helpful deals, worldwide trade could freeze. The global economy could plunge into a recession, and stocks could crash into a nasty bear market.
The financial fallout could be devastating… meaning now is the time to prepare for that potential outcome.
Now, what exactly is about to take place?
“Liberation Day.”
Of course, that’s what U.S. President Donald Trump is calling it. On Wednesday, April 2, he is set to announce a huge new batch of tariffs that could reshape the global economic system, liberating America from bad trading deals, as he sees it.
But those tariffs – if they stick around – could have a significant impact on the economy. They could drag us into a recession as bad as – or perhaps even worse than – that of the 2008 financial crisis.
Here’s why…
The Potential Outcome of More Sweeping Tariffs
Tariffs are a tax on imports. That means that any U.S. company that imports any good or material will now pay more for it if it is tariffed. And on “Liberation Day,” Trump promises to enforce tariffs on a lot of different imports.
Companies will be forced to either absorb those higher costs (and shrink profit margins), pass on those higher costs to consumers (and raise inflation), reorganize supply chains (and cause business disruptions), or some combination of the three.
No matter which path U.S. companies choose, a negative growth shock is likely.
Look no further than the Institute of Supply Management’s Manufacturing and Services recent surveys from February 2025. They are arguably the two most widely followed business sentiment surveys for the U.S. economy’s manufacturing and services sectors.
Therein, one accommodation and food services firm said:
“Tariff actions have created chaos in information and pricing measures, forecasting and forward buys, which may artificially inflate purchases to be followed by a drop off.”
A construction firm noted:
“Implementation of tariffs will have a significant cost impact to our projects. The majority of the capital equipment we purchase is not manufactured in the U.S., or components that make the equipment come from overseas manufacturers. We are also seeing U.S. prices already rise in anticipation, which is a similar reaction of the U.S. suppliers when the previous tariffs were introduced.”
An information services company commented:
“Tariffs are going to have a ripple down effect that could severely harm our business.”
And one machinery firm said:
“The incoming tariffs are causing our products to increase in price. Sweeping price increases are incoming from suppliers.”
It seems inarguable. A global trade war will slow the economy. If it lasts – or gets worse – it could crush most folks’ financial wellbeing.
And it could all come to a head in just a few days.
The Final Word
This coming Wednesday, April 2 – on “Liberation Day” – Trump is set to announce a new set of sweeping tariffs… the “big one”, as he’s called it.
They may likely include a wide range of reciprocal tariffs against America’s largest trading partners. Collectively, they would raise the average U.S. tariff rate from 2.5% to 35%, per recent Bloomberg analysis.
That would mean that just days from now, the average tariff rate on goods coming into the U.S. could spike overnight to levels it hasn’t reached in over 100 years!

It may be the most important day this year; one it’s paramount to be prepared for.
To be sure, we think we will avoid the worst-case outcome here. Given the pattern of behavior thus far, it feels likely that this trade war won’t last. Our nation and its trading partners have already reached several deals on previously threatened tariffs. That’s why we expect more deals to be announced in April – and to actually see trade war resolution, not escalation, over the next few months.
But major risks are emerging. And we need to be ready for them.
That’s why we’ve been working on a brand-new special report: the Trade War Protection Playbook.
It includes our top 10 favorite stock market plays to protect and even grow your wealth if this global trade war gets worse next week.
This is a report you’re going to want to get your hands on – before April 2.
Learn how to hedge against the rising trade war risks.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.