President Donald Trump announced plans to impose a 25% tariff on imports of automobiles, semiconductors, and pharmaceuticals, aiming to protect U.S. industries and encourage companies to relocate operations domestically. The tariffs are expected to be finalized by April 2, following the completion of a trade policy review.
Trump has criticized the European Union’s 10% duty on vehicle imports, which is higher than the U.S. rate of 2.5%. In response, EU trade chief Maroš Šefčovič is scheduled to meet with U.S. officials to discuss the proposed tariffs and seek to prevent a potential trade war.
The President also indicated that tariffs on semiconductors and pharmaceuticals could start at 25% or higher, with the possibility of increasing over the course of a year. He suggested that companies in these sectors establish U.S. operations to avoid the tariffs.
These announcements follow previous tariffs imposed by the Trump administration, including a 25% tariff on steel and aluminum imports and increased levies on Chinese goods. The administration has also delayed implementing tariffs on Canada and Mexico, pending further negotiations.
Market reactions to the proposed tariffs have been muted, with European stocks experiencing minor fluctuations. Investors appear to have become accustomed to tariff threats, focusing instead on other economic indicators and earnings reports.
Critics warn that these tariffs could lead to higher consumer prices and escalate global trade tensions. The European Union has expressed its readiness to retaliate against unjustified barriers to free and fair trade, emphasizing the importance of resolving disputes through constructive dialogue.
As the situation develops, further discussions between U.S. and EU officials are anticipated to address the potential impact of the proposed tariffs and explore possible resolutions.