The United States government is considering the implementation of significant tariffs on imports of automobiles, semiconductors, and pharmaceuticals. As reported by Reuters and CBS News, President Donald Trump announced at his Mar-a-Lago estate that the tariffs specifically targeting automobile imports could reach approximately 25 percent. He plans to provide further details about this initiative on April 2, coinciding with the reports he will receive from his cabinet regarding various industries’ duty options. When questioned about the potential for retaliatory tariffs from the European Union, the president indicated that the EU has expressed intentions to reduce tariffs on American cars.

In addition to the automobile tariffs, President Trump mentioned that similar duties would apply to imported semiconductors and pharmaceutical products. He suggested that the tax rates might reach 25 percent or even exceed this figure for these imports, with potential increases anticipated over the next year. However, it appears that he will not introduce new taxes on chips and pharmaceutical goods in April, as he wants to allow companies in these sectors “a little bit of time” to establish manufacturing facilities in the U.S. to circumvent these tariffs.

Moreover, Reuters has previously indicated that the U.S. administration is seeking to renegotiate the CHIPS and Science Act agreements established by the Biden administration. This program aims to enhance semiconductor manufacturing in the U.S. by providing grants to companies that build foundries domestically. Trump has criticized this initiative in the past, proposing that the rise in tariffs would incentivize chip manufacturers to set up production in the U.S. without requiring government expenditure. While he acknowledged that U.S. prices might rise due to these increased tariffs on foreign products, the president maintains that this situation will be a temporary challenge, offset by long-term advantages for the economy.