UNITED STATES President Donald Trump said on Monday automobile tariffs are coming soon even as he indicated that not all of his threatened levies would be imposed on April 2 and some countries may get breaks, a move Wall Street took as a sign of flexibility on a matter that has roiled markets for weeks.
Reuters reported today that, at the same time, Trump opened another front in a global trade war by slapping 25% secondary tariffs on any country that buys oil or gas from Venezuela, a directive that sent oil prices climbing.
At the White House, Trump told reporters not all the new tariffs would be announced on April 2, and said he may give "a lot of countries" breaks on tariffs, but provided no details.
A White House official declined to say exactly when sector-specific tariffs on autos, pharmaceuticals or semiconductor chips would come into effect, noting that was still "TBD (to be determined) and at the president's discretion."
The official cautioned against expecting a tariff reprieve, adding, "The president is determined to implement reciprocal tariffs that are very strong. People should expect that."
Bloomberg and the Wall Street Journal reported earlier that the administration was narrowing its approach to the broad batch of levies Trump has been saying for weeks would be imposed on April 2, and could delay sector-specific tariffs.
U.S. stocks ended Monday broadly higher on optimism that the tariffs set to be detailed next week may not be as extensive as expected. The S&P 500 index gained nearly 1.8% to close at its highest in more than two weeks.
Meanwhile, Trump said the U.S. would impose tariffs on autos, pharmaceuticals and aluminum in "the very near future," arguing that the U.S. would need all those products in the event of wars or other problems.
It claims he should have offered investors a say on scrapping green energy targets.
The auto tariffs would come in the next few days, Trump said later in the day, adding that tariffs on lumber and semiconductor chips would follow "down the road."
"We've been ripped off by every country," Trump said after a meeting of his cabinet, predicting that the expected tariffs would raise "rather astronomical" amounts of money for U.S. coffers, allowing tax rates to remain low or come down.
Trump, who has said countries can still avoid levies if they lower their tariffs or move manufacturing to the U.S., also announced on Monday a US$21 billion investment by South Korea's Hyundai Motor Group in the United States.
The investment would include a US$5.8 billion new steel plant in Louisiana, he said at the White House alongside Hyundai Chairman Euisun Chung and Louisiana Governor Jeff Landry. – March 25, 2025
