Trump to impose 25% tariffs on automobiles, pharmaceuticals, and chips

Published 2025/02/19, 03:38
© Reuters

Investing.com-- U.S. President Donald Trump said on Tuesday that he plans to impose tariffs of around 25% on automobiles, semiconductors, and pharmaceutical imports, and will enact some of them by April. 

His comments- made to reporters at Trump’s Mar-a-Lago resort in Florida, mark the latest move in the President’s agenda of furthering America’s standing in global trade.

Trump said that he will impose 25% tariffs on pharmaceuticals and semiconductor imports, and that the duties will increase substantially over the next year. 

But he did not specify when these tariffs will be imposed, stating that he wanted to give drug and chip makers some time to set up factories in the U.S.

On the automobile duties, Trump had said that the 25% tariffs could be imposed by as soon as April 2. The U.S. President has long criticized allegedly unfair practices in global trade, where U.S. exports face high duties in destinations such as Europe.

Europe in particular has been a major target of Trump’s ire, with the President having threatened to hike U.S. tariffs on European imports to match the bloc’s import duties. 

Trump has also leveled similar threats against Canada, Mexico, and India. 

A 25% tariff on automobile imports would rattle global carmakers such as Toyota (NYSE:TM), which depend heavily on North American markets. U.S. automakers such as General Motors Company (NYSE:GM) and Ford (NYSE:F), which have operations in Mexico, also stand to be impacted.  

Tuesday’s threats are the latest in Trump’s tariff agenda. Since his inauguration in January, Trump imposed 10% tariffs on China, 25% tariffs on steel and aluminum imports, and outlined plans for reciprocal tariffs against major U.S. trading partners. 

The President has instructed his top trade and commerce diplomats to study imbalances in U.S. trade, with a report on the matter due by early-April. 

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