Trump proposes 25% tariffs on automobiles, pharmaceuticals and semiconductors that could be even higher

President Donald Trump said it could broaden the scope of US tariffs on imports to include automobiles, drugs and semiconductors.

In a comment to a reporter on Tuesday, Trump said his duties were around 25%, “it’s going to be very much higher on a one-year course.” The president did not say whether the new tariffs will apply to all vehicles coming to the US or if they will target certain countries, but said they could start early on April 2nd.

However, the threat represents the administration’s aggressive trade policy, which already includes a 25% tariff on steel and aluminum imports, which is due to take effect in March.

The countries with the largest exports of automobiles to the United States are Mexico, Japan and Canada.

Trump said tariffs already have a desired effect, and companies resident overseas hope to return to the US

“I’ve been contacted by some of the world’s biggest companies. They want to return to the US through tariffs and incentives because of what we’re doing economically,” he said. said.

“When they’re back in the US and they have their plants and factories here, there’s no tariffs,” Trump added. “So we want to give them a little chance.”

Regarding medicines, I feel that the countries that feel the biggest impact are Japan and India. Tariffs can exacerbate costs and cause shortages at first, but the economic impact is unknown.

“Taxes could raise drug prices for U.S. patients, exacerbate drug supply shortages and encourage manufacturers to seek alternative markets,” said Ophelia Chan, senior business fundamentals analyst at GlobalData. Chang also said that companies in the industry could “respond to relocating manufacturing and testing to the US or other tariff-free countries, but the full impact is still uncertain.”

In semiconductors, Trump didn’t show when it would happen. Those taxation will have an impact Taiwan SemiconductorsProvides tips to businesses including nvidia and apple.