4 days ago
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US President Donald Trump announced on Tuesday his intention to impose tariffs on auto imports “in the neighborhood of 25%” as well as similar duties on pharmaceutical and semiconductor imports, marking the latest move in his effort to reshape global trade.
Speaking to reporters at his Mar-a-Lago estate in Florida, Trump stated that sectoral tariffs on pharmaceuticals and semiconductor chips would also start at “25% or higher” and could rise substantially over the course of a year.
However, he did not provide a specific date for their implementation, adding that he wanted to give companies time to establish US factories to avoid the tariffs.
Trump, who has repeatedly criticised what he considers unfair treatment of US automotive exports, said the auto tariffs could take effect as soon as April 2.
This would follow reports from his cabinet, due on April 1, outlining options for various import duties.
“The European Union, for instance, collects a 10% duty on vehicle imports, four times the US passenger car tariff rate of 2.5%,” Trump said, reiterating his longstanding criticism of global trade disparities.
While the US currently imposes a 25% tariff on imported pickup trucks—except those from Mexico and Canada—Trump has argued for extending similar protectionist measures to the broader auto industry.
EU trade chief Maros Sefcovic is set to meet with US officials, including Commerce Secretary Howard Lutnick, Trump’s nominee for US Trade Representative Jamieson Greer, and National Economic Council Director Kevin Hassett, in Washington on Wednesday. The discussions will centre on the proposed tariffs and potential negotiations.
Asked whether the EU could avoid the reciprocal tariffs he proposed last week, Trump insisted that European officials had already indicated willingness to lower their tariffs on US cars. However, EU lawmakers have denied making such commitments.
### **Broadening the Tariff War**
Trump has aggressively pursued tariffs since his inauguration four weeks ago, already imposing a 10% levy on all Chinese imports due to Beijing’s failure to curb fentanyl trafficking.
He also announced, and later delayed for a month, 25% tariffs on Mexican goods and non-energy imports from Canada. Additionally, a 25% tariff on imported steel and aluminium is scheduled to take effect on March 12, ending exemptions for Canada, Mexico, the EU, and other trading partners.
In a move that could have far-reaching implications for global supply chains, Trump has directed his economic team to develop a reciprocal tariff strategy that would match each country’s tariff rates product-by-product.
A 25% auto import tariff would represent a major shift for an already unsettled global auto industry.
This echoes similar threats made during Trump’s first term, when the Commerce Department conducted a national security investigation into auto imports and concluded they weakened the US industrial base.
While Trump considered imposing the tariffs in 2018 and 2019, he ultimately refrained from taking action, allowing the tariff authority from that probe to lapse.
Some of the research from the 2018 investigation may now be revisited or updated as part of Trump’s renewed automotive tariff initiative.
Trump also hinted at upcoming major investment announcements from leading corporations in response to his tariff strategy but declined to provide further details.
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