US President Donald Trump announced plans to impose tariffs of approximately 25% on automobiles, semiconductors, and pharmaceutical imports, according to Reuters.
Trump stated that auto tariffs could be implemented as early as April 2, following the submission of reports by his cabinet members outlining options for a range of import duties. The president has long criticised what he describes as unfair treatment of US automotive exports in foreign markets.
For example, the European Union imposes a 10% tariff on vehicle imports, four times the US passenger car tariff rate of 2.5%. However, the US levies a 25% tariff on pickup trucks from countries outside of Mexico and Canada, a policy that has benefited Detroit automakers.
EU trade chief Maroš Šefčovič is scheduled 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 to discuss the proposed tariffs.
When asked whether the EU could avoid reciprocal tariffs, Trump reiterated his claim that the EU had signaled a willingness to lower its auto tariffs to match US rates. Trump added that he would push EU officials to increase imports of US cars and other products.
Pharmaceutical and semiconductor tariffs
Trump also revealed plans to impose sectoral tariffs on pharmaceuticals and semiconductor chips, starting at 25% or higher and potentially increasing significantly over the next year. He did not specify a timeline for implementing these duties but indicated that he would allow time for drug and chip manufacturers to establish US-based production facilities to avoid the tariffs.
The president expressed confidence that major global companies would announce new investments in the United States in the coming weeks, though he provided no further details.
Since taking office four weeks ago, Trump has introduced a series of trade measures, including a 10% tariff on all Chinese imports over the country’s failure to curb fentanyl trafficking. He also announced, and subsequently delayed, 25% tariffs on goods from Mexico and non-energy imports from Canada.
Potential impact
Additionally, Trump has set a March 12 start date for 25% tariffs on all imported steel and aluminum, eliminating exemptions for Canada, Mexico, the European Union, and other trading partners. The tariffs will also apply to hundreds of downstream products made from steel and aluminum, ranging from electrical conduit tubing to bulldozer blades.
Trump’s latest tariff proposals underscore his administration’s focus on protecting domestic industries and reshaping global trade dynamics, even as they risk escalating trade tensions with key allies and trading partners.
