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.

U.S. stocks closed up on Wednesday ahead of President Donald Trump's announcement of sweeping tariffs, which the White House dubbed "Liberation Day." The Dow Jones Industrial Average climbed 230 points, or 0.5%, while the S &P 500 rose 0.6%. The tech-heavy Nasdaq increased 0.8%.

President Donald Trump’s promised “liberation day” of tariffs is here. How investors can navigate any market volatility coming after April 2.

The New York Stock Exchange opening bell rings to start the day's trading after President Donald Trump announced his plans for sweeping tariffs on April 2.

President Trump will announce widespread tariffs on April 2, an event he’s referring to as “Liberation Day.” The fact that Liberation Day may determine what happens to stocks next has caught the attention of veteran analyst Tom Lee of FundStrat.

Overseas markets also slid Friday. In overnight trading in Asia, Tokyo's Nikkei 225 lost 2.8%, while South Korea's Kospi sank 0.9%. Markets in Shanghai, Taiwan, Hong Kong and Indonesia were closed for holidays, limiting the scope of Friday's sell-offs in Asia.

While there are a few concerns that have investors' attention at the moment, including a forecasted contraction in first-quarter gross domestic product, along with the historic priciness of stocks, perhaps the prevailing issue for the stock market is President Donald Trump's tariff policy.

Options data indicates big swings are possible in responses to Trump's tariff announcements on Wednesday. Here's what to know.

Wednesday’s upcoming tariff announcements provide a wide range of possible outcomes. The uncertainty and downside risks to the economy and earnings have rattled markets.