President Donald Trump’s upcoming tariff plan, set for April 2, is expected to be more targeted and limited than previously suggested, though it still represents a significant escalation in U.S. trade policy, according to sources familiar with the ongoing discussions.

While the president had previously threatened sweeping duties on a wide range of imports, senior administration officials are now signaling a more measured approach, focusing on countries with the largest trade imbalances with the U.S.

Trump celebrated the upcoming tariffs in a post on Truth Social, writing:

“April 2nd is Liberation Day in America!!! For DECADES we have been ripped off and abused by every nation in the World, both friend and foe. Now it is finally time for the Good Ol’ USA to get some of that MONEY, and RESPECT, BACK. GOD BLESS AMERICA!!!”

Despite the fiery rhetoric, top officials have softened expectations in recent public remarks.

Kevin Hassett, director of the National Economic Council, told Fox News that not all countries would be affected.

“Markets need to change their expectations,” Hassett said. “It’s not everybody that cheats us on trade—it’s just a few countries, and those countries are going to be seeing some tariffs.”

According to Treasury Secretary Scott Bessent, the U.S. is concentrating on 15% of its trading partners, which collectively represent a large portion of overall trade volume.

Data from the U.S. Census Bureau shows that the country’s largest trade deficits in 2024 were with China, the EU, Mexico, Vietnam, Taiwan, Japan, South Korea, Canada, India, Thailand, Switzerland, Malaysia, Indonesia, Cambodia, and South Africa.

Reports from Bloomberg and The Wall Street Journal indicate the administration will likely avoid imposing tariffs on key sectors such as automobiles, pharmaceuticals, and semiconductors—a shift from earlier drafts of the April 2 plan.

The revised strategy appears to have calmed Wall Street. On Monday, U.S. stock markets rallied, with the Dow Jones Industrial Average jumping nearly 500 points (1.2%) and the S&P 500 posting similar gains.

While the final tariff list is still being finalized, the narrower scope could blunt the economic fallout while still fulfilling Trump’s “America First” trade agenda—a signature policy focus heading into the election season.