President Donald Trump is touting April 2 as the day the U.S. gets "money, and respect, back." Here's why he's calling it "Liberation Day."

The worst sell-off of 2025 (so far) came on April 3, with the Dow Jones Industrial Average dropping 3.98%, the S&P 500 down 4.84%, and the Nasdaq 100 plummeting 5.41% by the market close.

Trump has repeatedly called April 2 “Liberation Day,” with promises to roll out a set of tariffs, or taxes on imports from other countries, that he says will free the U.S. from a reliance on foreign goods. To do this, Trump has said he’ll impose “reciprocal” tariffs to match the duties that other countries charge on U.S. products.

President Trump rolled out new tariffs on April 2 aimed at easing trade imbalances. Here's which products could become more expensive as a result.

Problem is, economists widely agree that tariffs, if applied broadly, result in higher prices for consumer goods regardless of where they are being made, push other countries to raise their own tariffs instead of lowering them and,

Trump has repeatedly called April 2 “Liberation Day,” with promises to roll out a set of tariffs, or taxes on imports from other countries, that he says will free the U.S. from a reliance on foreign goods.

Some countries are promising swift countermeasures; others are asking for an opportunity to negotiate with the U.S. to avoid trade war.

The U.S. and global markets have already started to feel the impact of Trump’s tariffs, with the U.S. stock market taking the worst hit thus far. The Wall Street slump and global dip in stocks have sparked fresh fears in economists and concerns as to whether the U.S. is heading into a recession.

What is Liberation Day? Donald Trump will impose a fresh round of tariffs on imports on April 2, and he's calling it the 'big one.'