February 21, 2025
Donald Trump

U.S. President Donald Trump announced on Tuesday his plan to impose a 25% tariff on automobile imports, along with similar duties on semiconductors and pharmaceuticals, in a move that could further disrupt global trade.

Trump had previously indicated that auto tariffs could take effect as early as April 2, just a day after members of his cabinet are expected to present reports outlining potential import duties as part of his broader trade strategy.

The former president has long criticized what he perceives as unfair treatment of U.S. automotive exports. For instance, the European Union currently imposes a 10% duty on vehicle imports—four times higher than the U.S. passenger car tariff of 2.5%. However, the U.S. already levies a 25% tariff on imported pickup trucks from countries outside North America, making them highly profitable for American automakers.

In response, European Union trade chief Maros Sefcovic is set to meet with U.S. officials—including Commerce Secretary Howard Lutnick, Trump’s nominee for U.S. Trade Representative Jamieson Greer, and National Economic Council Director Kevin Hassett—on Wednesday in Washington to discuss the proposed tariffs.

When asked whether the EU could avoid the reciprocal tariffs he suggested last week, Trump reiterated his claim that European officials had already signaled a willingness to lower their tariffs on U.S. cars to match the U.S. rate. However, EU lawmakers have denied making such commitments.

Trump also stated that he would push EU officials to increase their imports of American-made cars and other products.

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