US President Donald Trump announced plans on Tuesday to impose a 25% tariff on automobile imports, along with similar duties on semiconductors and pharmaceutical products.
The move is part of his ongoing effort to reshape global trade, which could have significant economic consequences.
Trump indicated that auto tariffs could take effect as early as April 2, just a day after his cabinet members are scheduled to present reports outlining various trade measures.
He has long criticized what he sees as unfair trade practices, pointing out that the European Union imposes a 10% tariff on US vehicle imports—four times higher than the 2.5% tariff the US applies to passenger cars.
However, the US already imposes a steep 25% duty on imported pickup trucks from countries outside of North America, a policy that benefits American automakers.
Talks with the EU
European trade chief Maros Sefcovic is set to meet with US officials—including Commerce Secretary Howard Lutnick, US Trade Representative nominee Jamieson Greer, and National Economic Council Director Kevin Hassett—in Washington on Wednesday to discuss the proposed tariffs.
When asked if the EU could avoid these trade penalties, Trump reiterated his claim that European officials had already agreed to lower their tariffs on US cars to match US rates—something EU lawmakers have denied.
He also stated that he would push for increased European imports of American goods.
Tariffs on pharmaceuticals and semiconductors
Trump also revealed plans to impose sector-specific tariffs of at least 25% on pharmaceuticals and semiconductor chips, with the possibility of further increases over the next year.
However, he did not specify a timeline, saying he wanted to allow companies time to set up manufacturing facilities in the US to avoid the tariffs.
He also hinted that major corporations would soon announce new investments in the US, though he did not provide any details.
Since taking office, Trump has implemented a 10% tariff on all Chinese imports due to Beijing’s failure to curb fentanyl trafficking.
He also initially announced 25% tariffs on goods from Mexico and non-energy imports from Canada but later delayed them for a month.
Additionally, a 25% tariff on imported steel and aluminum is set to take effect on March 12, removing previous exemptions for key trading partners, including Canada, Mexico, and the EU.
These duties will also apply to hundreds of downstream steel and aluminum products, from electrical conduit tubing to bulldozer blades.
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