U.S. President Donald Trump has intensified his trade offensive, threatening 25 percent tariffs on imported cars, as well as similar or higher duties on pharmaceuticals and semiconductors.
Speaking at his Mar-a-Lago resort in Florida on Tuesday, Trump stated that tariffs on the automobile sector would be “in the neighborhood of 25 percent,” with further details expected by April 2. He also warned that duties on pharmaceuticals and semiconductors could start at 25 percent and increase significantly over the course of a year.
Trump, who has imposed a series of tariffs since taking office in January 2025, argues that these measures will address unfair trade practices and encourage companies to relocate their manufacturing operations to the United States.
Push for Local Manufacturing
The president urged businesses to move production to the U.S., assuring that companies with domestic factories would not face tariffs.
“We want to give them time to come in,” Trump said. “When they come into the United States and have their plant or factory here, there is no tariff. So we want to give them a little bit of a chance.”
However, experts caution that tariffs on imports often result in higher costs for American consumers rather than significantly impacting foreign exporters.
Currently, around 50 percent of cars sold in the U.S. are manufactured domestically, while half of the imported vehicles come from Mexico and Canada. Other major suppliers include Japan, South Korea, and Germany.
Global Reactions
Trump’s tariff threats have been met with caution across Asia, home to key suppliers in the automotive, pharmaceutical, and semiconductor industries.
In Japan, Chief Cabinet Secretary Yoshimasa Hayashi confirmed that Tokyo has raised concerns with Washington, citing the importance of Japan’s auto sector.
Taiwan, a global semiconductor powerhouse, said it is closely monitoring the situation. Its economic ministry noted that the specifics of Trump’s measures remain unclear but pledged to assist Taiwan’s industries in navigating any potential impact.
Trade Relations with the EU
Trump also weighed in on trade relations with the European Union, expressing satisfaction that the EU had reduced its automobile tariffs from 10 percent to 2.5 percent, matching the U.S. rate.
“The EU has been very unfair to us. We have a trade deficit of $350 billion, they don’t buy our cars, they don’t take our farm products, they don’t take almost anything… and we’ll have to straighten that out,” he said.
In 2024, the U.S. recorded a $235 billion trade deficit in goods with the EU, according to Commerce Department data. However, in services, the U.S. maintained a $109 billion surplus with the bloc in 2023, based on European Commission figures.
Meanwhile, Maros Sefcovic, the European Commissioner for Trade and Economic Security, has arrived in Washington for talks with U.S. Commerce Secretary Howard Lutnick and White House Trade Representative Jamieson Greer.
The outcome of these discussions could shape the trajectory of U.S.-EU trade policies in the coming months.
(Source: AFP, Channels TV)
