The United States may soon impose hefty tariffs on imported automobiles, semiconductor chips, and pharmaceuticals, with President Donald Trump indicating that a 25% duty is on the cards. The move is expected to stir up global trade, as it aims to push companies to manufacture in the U.S. while addressing what Trump sees as unfair trading terms.
Speaking to reporters, Trump suggested that the auto tariffs could be rolled out as early as April 2, aligning with upcoming cabinet reports on trade measures. When pressed for details, he said, “I probably will tell you that on April 2, but it will be in the neighbourhood of 25%,” as reported by Bloomberg.
For years, Trump has argued that American carmakers operate at a disadvantage in global markets. He pointed out that while the U.S. imposes a 2.5% tariff on imported passenger vehicles, European countries slap a 10% duty on American-made cars. However, the U.S. already has a 25% tariff on imported pickup trucks—a policy that won’t change for vehicles coming from Mexico and Canada, effectively shielding domestic manufacturers.
Beyond automobiles, Trump revealed that pharmaceuticals and semiconductor chips would also face a 25% tariff in the first phase, with further increases expected over the next year. He didn’t specify when these duties would take effect but hinted at giving companies time to shift production to the U.S.
“When they come into the United States and they have their plant or factory over here, there is no tariff, so we want them to give a little bit of a chance,” he explained, according to Bloomberg.
This isn’t Trump’s first tariff move. Since returning to office, he has already slapped a 10% tariff on all Chinese imports, citing concerns over fentanyl trafficking. Additionally, a 25% duty on steel and aluminium imports is set to kick in on March 12, with previous exemptions for key trading partners—including Mexico, Canada, and the European Union—now removed.
