Trump plans 25% vehicle tariffs to reshape US trade policy

19 February 2025 - 09:52 By Reuters
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Trump has long pointed to what he calls unfair treatment of US automotive exports in foreign markets.
Trump has long pointed to what he calls unfair treatment of US automotive exports in foreign markets.
Image: Joe Raedle/Getty Images

US President Donald Trump said on Tuesday vehicle tariffs will be about 25% and he will have more to share on the topic on April 2.

On Friday, Trump said levies on vehicles would come on April 2, the day after members of his cabinet are due to deliver reports to him outlining options for a range of import duties as he seeks to reshape global trade.

Trump has long pointed to what he calls unfair treatment of US automotive exports in foreign markets.

The EU, for example, collects a 10% tariff on vehicle imports, four times the US passenger car tariff rate of 2.5%. The US, though, collects a 25% tariff on highly profitable imported pickup trucks.

Trump on Tuesday also said sectoral tariffs on pharmaceuticals and semiconductor chips would also probably start at 25% in April, with at least some rising afterwards over the course of a year.

Since his inauguration, Trump has imposed a 10% tariff on all imports from China, on top of existing levies. He also announced, and then delayed for a month, 25% tariffs on goods from Mexico and non-energy imports from Canada.

He has also set a March 12 start date for 25% tariffs on all imported steel and aluminium. Last week, he directed his economic team to devise plans for reciprocal tariffs on every country that taxes US imports.


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