US President Donald Trump announced his plan to impose a 25% tariff on auto from the neighboring countries and a similar import tariff on semiconductors and pharmaceuticals. The detail on auto tariff is expected to be announced as soon as April 2, which is the date that Trump will receive a report from his economic team that gives further detail on the range of import tariffs.
Trump has long claimed that the US auto exports in foreign markets are being treated unfairly. For example, the US only collects a 2.5% tariff on passenger cars, while the EU collects a 10% tariff on imported vehicles, which is four times higher. Still, the US also collects a 25% tariff on pickup trucks from several countries.
This Wednesday in Washington, EU trade chief Maros Sefcovic will meet with US Commerce Secretary Howard Lutnick, Nominee for US Trade Representative Jamieson Greer, and National Economic Council director Kevin Hassett to discuss Trump’s threat on various tariffs.
Nevertheless, Trump claimed that there is an indication that the EU will decrease its tariffs on US cars to the US rate, which EU lawmakers denied. Trump added that he would ask for more imports on US autos and other goods.
Still, this 25% tariff on auto imports will significantly affect the global auto industry, which is already facing the uncertainty caused by Trump’s tariff.
Regarding semiconductors and pharmaceutical imports, Trump stated he would impose a “25% or higher” tariff. However, he did not say when this tariff will be imposed, only citing that he is currently giving time for companies in these industries to set up factories in the US so they can avoid tariffs.
Since Trump became the president of the US, he has imposed tariffs on several nations. There is a 10% additional tariff on China on top of the previous tariff, which is imposed on all Chinese imports. There is also a 25% tariff on Mexico’s goods and Canada’s non-energy imports, which he is currently delaying for a month.
On March 12, Trump will also impose 25% tariffs on all imported steel and aluminum on every country without any exemption. Furthermore, his economic team is preparing a retaliation on unfair trade practices with reciprocal tariffs that will match the product-by-product import rates of US trading partners.
