In a move set to escalate global trade tensions, President Donald Trump is expected to announce tariffs on auto imports this Wednesday, according to the White House.
The decision comes as part of his administration’s broader strategy to impose levies on major trading partners, including Canada, Mexico, and China, in a bid to rectify what he sees as unfair trade practices.
Since returning to office in January, Trump has already enforced tariffs on key imports such as steel and aluminum, impacting manufacturers and raising concerns among economists about the long-term economic implications. While automakers were previously granted a temporary reprieve from similar levies, that grace period appears to be coming to an end.
White House Press Secretary Karoline Leavitt announced that President Trump would hold a press conference at 4:00 PM (2000 GMT) to formally introduce the new tariffs on the automobile sector.
The news sent immediate ripples through the stock market, with shares of Ford and General Motors declining by 1.8% and 1.9%, respectively.
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Industry experts warn that additional duties could further strain businesses already grappling with economic uncertainty. If companies are unable to absorb the increased costs, these expenses could eventually be passed on to consumers, leading to higher prices for automobiles and related products.
Beyond the auto industry, President Trump has signaled interest in implementing sector-specific tariffs on industries such as pharmaceuticals and semiconductors.
The looming tariff announcement also coincides with Trump’s much-anticipated “Liberation Day” on April 2, a date he has earmarked for the introduction of reciprocal tariffs targeting various trading partners.
The details of these additional levies remain unclear, as the White House has stated that the situation remains fluid. However, Trump himself hinted at a potential softening of his stance earlier this week.
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Speaking to Newsmax on Tuesday, he remarked, “I’ll probably be more lenient than reciprocal, because if I was reciprocal, that would be very tough for people.” He did, however, stress that he does not want to introduce too many exemptions.
The impending tariffs have prompted US trading partners to engage in negotiations in an effort to mitigate potential economic fallout. European Union trade chief Maros Sefcovic recently met with US Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer to discuss the matter.
In a social media post following the talks, Sefcovic emphasized the EU’s commitment to pursuing a “fair, balanced deal instead of unjustified tariffs,” adding, “We share the goal of industrial strength on both sides.”
As the world watches closely, the upcoming announcement will undoubtedly shape the trajectory of global trade relations in the months ahead.
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