Hadriana Lowenkron and Josh Wingrove of Bloomberg report that President Trump plans to impose 25% tariffs on automobile, semiconductor, and pharmaceutical imports starting April 2. This expansion of the trade war could impact countries like South Korea, Japan, and Mexico, raising consumer prices and triggering retaliatory actions. They write:
President Donald Trump said he would likely impose tariffs on automobile, semiconductor and pharmaceutical imports of around 25%, with an announcement coming as soon as April 2, a move that would dramatically widen the president’s trade war.
Trump has previously announced 25% tariffs on steel and aluminum that are set to take effect in March. Tuesday’s comments are his most detailed yet in specifying other sectors to be hit with fresh barriers if implemented.
“I probably will tell you that on April 2, but it’ll be in the neighborhood of 25%,” Trump told reporters at his Mar-a-Lago club when asked about his plan for auto tariffs. […]
Trump has also threatened other streams of tariffs, all part of an effort to rebalance the US’s trading relationships across the globe. The president has long accused other countries of ripping off the US and views import duties as a way to bring industries back to America and collect more revenue. Many economists say they would raise consumer prices for Americans and stymie the fight against inflation. […]
Altogether, Trump’s moves, if enacted, stand to remake supply chains and trade flows — and US prices. Tariffs are paid by importers and often passed onto consumers, though sometimes offset by price reductions abroad.
“It seems like no one is really getting through this unscathed,” said Katrina Ell, head of Asia Pacific economies at Moody’s Analytics. “I hope they’re using them as a negotiating tool. […]
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