U.S. President Donald Trump announced on Tuesday plans to impose 25% tariffs on auto imports, along with similar duties on pharmaceuticals and semiconductor chips, marking his latest move to reshape global trade policies.
Speaking from his Mar-a-Lago estate in Florida, Trump indicated that tariffs on pharmaceuticals and semiconductor chips would start at 25% or higher, with the potential for further increases over the next year.
However, he did not specify an exact implementation date, stating that he wants to give companies time to establish U.S.-based factories to avoid the tariffs.
Trump, who has long criticized global trade policies as unfair to U.S. manufacturers, said auto tariffs could take effect as soon as April 2.
This timeline aligns with cabinet reports due on April 1, which will outline various options for import duties.
“The European Union, for instance, collects a 10% duty on vehicle imports—four times the U.S. passenger car tariff rate of 2.5%,” Trump stated, reiterating his criticism of global trade disparities.
Currently, the U.S. imposes a 25% tariff on imported pickup trucks—excluding those from Mexico and Canada—but Trump has argued for extending similar protectionist measures across the broader auto industry.
In response to Trump’s new tariff threats, EU trade chief Maros Sefcovic is set to meet with top U.S. officials in Washington on Wednesday, including:
- Commerce Secretary Howard Lutnick
- Trump’s nominee for U.S. Trade Representative Jamieson Greer
- National Economic Council Director Kevin Hassett
The discussions will focus on the proposed tariffs and potential trade negotiations.
When asked if the EU could avoid reciprocal tariffs, Trump claimed that European officials had expressed willingness to lower tariffs on U.S. cars. However, EU lawmakers have denied making such commitments.
Since returning to office four weeks ago, Trump has aggressively expanded his tariff policies, including a 10% tariff on all Chinese imports due to Beijing’s failure to curb fentanyl trafficking.
With U.S.-EU tensions rising, Trump’s latest protectionist measures could further reshape global trade dynamics, setting the stage for intensified negotiations—or a full-scale tariff war.
