Trump imposes 25% tariffs on auto, pharma, and semiconductor imports
What's the story
US President Donald Trump has announced his plans to impose a 25% tariff on imported automobiles, semiconductors, and pharmaceutical products. The move is part of a larger strategy to reshape global trade dynamics. The proposed auto tariffs could come into effect as soon as April 2, after a cabinet meeting where various import duty options will be discussed.
Trade inequalities
Trump's stance on foreign trade treatment
President Trump has repeatedly railed against the "unfair treatment" of US automotive exports in foreign markets. He hinted that the tariffs on these sectors could rise over time, but didn't dismiss a phase-in period for companies to shift production back to the US. The European Union currently levies a 10% duty on vehicle imports, much higher than the US passenger car tariff rate of 2.5%.
Trade talks
EU trade chief to discuss tariffs with US counterparts
EU trade chief Maros Sefcovic will meet US Commerce Secretary Howard Lutnick, Trump's nominee for US Trade Representative Jamieson Greer and National Economic Council director Kevin Hassett. The meeting in Washington today hopes to tackle the slew of tariffs proposed by President Trump. Though EU lawmakers denied any deal to reduce their tariffs on US cars, Trump maintains EU had already signaled its willingness to match the US rate.
Tariff timeline
Trump announces sectoral tariffs on pharma and semiconductors
President Trump has also announced sectoral tariffs on pharmaceuticals and semiconductor chips, starting at "25% or higher," with a significant increase expected over a year. However, he didn't give a specific date for these duties, saying he wanted to allow time for drug and chip manufacturers to establish US factories to avoid the tariffs. He expects major companies to announce new investments in the US within weeks.
Tariff history
Trump's previous and upcoming tariff actions
Since assuming office four weeks ago, President Trump has already slapped a 10% tariff on all Chinese imports for not stopping fentanyl trafficking. He also announced, then delayed by a month, 25% tariffs on goods from Mexico and non-energy imports from Canada. March 12 has been set as the start date for 25% tariffs on all imported steel and aluminum, ending exemptions for Canada, Mexico, European Union and other trading partners.