U.S. President Donald Trump said on Tuesday he intends to impose auto tariffs of around 25% and similar duties on semiconductor and pharmaceutical imports.
On Friday, he stated that levies on automobiles would take effect as soon as April 2, following reports from his cabinet outlining options for a range of import duties.
The European Union currently imposes a 10% duty on vehicle imports, compared to the U.S. passenger car tariff rate of 2.5%. However, the U.S. maintains a 25% tariff on pickup trucks from countries other than Mexico and Canada.
Trump also indicated that semiconductor tariffs would start at 25% or higher and increase over the course of a year. He did not specify a timeline but suggested that pharmaceutical tariffs would follow a similar structure, allowing companies time to establish U.S. production facilities to avoid the duties.
Since taking office, Trump has imposed tariffs and signaled more trade measures. His administration levied 10% tariffs on Chinese imports over fentanyl trafficking and set March 12 for 25% tariffs on steel and aluminum, removing exemptions for Canada, Mexico, and the EU.
Trump ordered reciprocal tariffs, matching foreign rates. A 25% tariff on Mexican and Canadian imports, set for February 4, was postponed to March 1 for negotiations.
He criticized the EU’s trade balance, proposing tariffs or increased U.S. energy purchases.
China retaliated with tariffs, while the European Commission raised concerns. Trump warned Russia and others of tariffs and sanctions if a Ukraine peace deal is not reached.
His trade policies target India and BRICS, pressing India to lower tariffs and increase U.S. imports. Colombia faced tariffs over migrant deportations but later reached an agreement.
The U.S. expanded steel and aluminum tariffs, citing a trade deficit. Semiconductor tariffs could impact Taiwan Semiconductor Manufacturing Co., while pharmaceutical tariffs may affect exporters in Japan and India.
The automobile industry faces additional potential tariffs, with Trump proposing duties of 100% or more on certain vehicles, including electric vehicles. The U.S. imported more than $202 billion worth of automobiles from Canada and Mexico in 2024.
