President Donald Trump announced plans to expand U.S. tariffs on imports to potentially include automobiles, pharmaceuticals, and semiconductors. The new tariffs could start as early as April 2 and promise to be as high as 25%, with the possibility of increasing "very substantially higher over a course of a year." These measures are part of the administration's aggressive trade policy, which already includes 25% tariffs on steel and aluminum imports set to take effect in March.
The potential tariffs on automobiles may impact major exporting nations such as Mexico, Japan, and Canada. However, President Trump has not clarified whether these tariffs will target all vehicles entering the U.S. or focus on specific countries. The possibility of broadening the scope has raised concerns among affected industries, particularly from companies like Taiwan Semiconductor, which supplies chips to tech giants such as Nvidia and Apple.
The implications for the semiconductor sector have prompted responses from industry experts. Ophelia Chan, a senior business fundamentals analyst at GlobalData, highlighted that companies in the semiconductor industry have voiced apprehensions about the potential tariffs. While Trump did not specify the particulars of the semiconductor duties, the prospect has stirred unease among stakeholders.
Japan and India could be among the nations most affected by these proposed tariffs. Japan's significant auto exports to the U.S. position it as a primary candidate for impact. Meanwhile, India's pharmaceuticals sector might face challenges under the newly proposed trade policies.
In addition to potential impacts on foreign nations, President Trump remarked that the existing tariffs on steel and aluminum are already fostering the desired outcomes. According to him, companies based overseas are showing interest in relocating operations back to the United States, reflecting the administration's objective to bolster domestic industry.