US President Donald Trump announced plans to impose tariffs of around 25% on auto imports, semiconductors, and pharmaceuticals as early as April 2. The move is part of his push for a more “balanced” trade with foreign markets and aims to reshore strategic industries.
The new tariffs will apply to goods shipped from China, Taiwan, and other countries. Trump has also recently imposed 10% tariffs on all steel and aluminum imports. He plans to increase the rate on semiconductor chips and drugs even further, stating that it will go “substantially higher” over a year’s time.
However, Trump wants to give affected companies a chance to bring their factories to America to avoid tariffs. The revelation comes after he ordered an investigation into other nations’ tax and tariff policies, paving the way for new reciprocal tariffs to take effect on April 2.
Industry experts warn that the steep new tariffs could have far-reaching effects, hurting consumers with higher prices and businesses with increased costs. Consumers are expected to feel the impact most, as prices of cars could jump by thousands of dollars due to import taxes on automobiles.
The pharmaceutical industry will also be affected, with US imports reaching over $176 billion in 2023. European, Indian, and Chinese firms could be among the hardest hit, given their significant market share.
Source: https://edition.cnn.com/2025/02/19/economy/us-new-tariff-plans-trump-intl-hnk