U.S. President Donald Trump said on Tuesday he intends to impose auto tariffs "in the neighborhood of 25 percent" and similar duties on semiconductors and pharmaceutical imports, the latest in a series of measures threatening to upend international trade.
On Friday, Trump said levies on automobiles would come as soon as April 2, the day after members of his cabinet are due to deliver reports to him outlining options for a range of import duties as he seeks to reshape global trade, reports Reuters.
Former U.S. President Donald Trump has long criticized foreign tariffs on American automotive exports, particularly the European Union’s 10 percent duty on vehicle imports, which is four times the 2.5 percent U.S. passenger car tariff. However, the U.S. imposes a 25 percent tariff on pickup trucks from countries outside North America, making them highly profitable for Detroit automakers.
EU trade chief Maros Sefcovic is set to meet U.S. officials in Washington on Wednesday to discuss Trump’s proposed tariffs. Trump claimed the EU had agreed to lower tariffs on U.S. cars, though EU lawmakers denied this. He also plans to push for increased U.S. exports to the EU.
In addition to auto tariffs, Trump announced sectoral duties on pharmaceuticals and semiconductor chips, starting at 25 percent and increasing over the year. He did not specify a timeline but said he wanted to give companies time to establish U.S. production facilities.
Since taking office, Trump has imposed a 10 percent tariff on all Chinese imports over fentanyl trafficking concerns and announced 25 percent tariffs on Mexican and non-energy Canadian goods, though he delayed their implementation by a month.
A 25 percent tariff on steel and aluminum imports, removing exemptions for key trade partners, is set to begin on March 12.
A similar auto tariff threat emerged during Trump’s first term, when a national security review found that auto imports weakened the domestic industry. Though he ultimately shelved the tariffs, some research from that probe may now be revisited.
Bd-pratidin English/Fariha Nowshin Chinika
