Trump says auto tariffs are coming, but not all levies will be imposed on April 2

WASHINGTON/HOUSTON - US President Donald Trump said on March 24 automobile tariffs are coming soon even as he indicated that not all of his threatened levies would be imposed on April 2 while some countries may get breaks, a move Wall Street took as a sign of flexibility on a matter that has roiled markets for weeks.

At the same time, Mr Trump opened another front in a global trade war by aiming 25 per cent secondary tariffs on any country that buys oil or gas from Venezuela, a directive that sent oil prices climbing.

At the White House, Mr 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 automobiles, 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.

US stocks ended March 24 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 per cent to close at its highest in more than two weeks.

Meanwhile, Mr Trump said the US would impose tariffs on autos, pharmaceuticals and aluminium in “the very near future”, arguing that the US would need all those products in the event of wars or other problems.

The auto tariffs would come in the next few days, Mr 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,” he said after a meeting of his Cabinet, predicting that the sectoral tariffs and reciprocal tariffs expected on April 2 would raise “rather astronomical” amounts of money for US coffers, allowing tax rates to remain low or come down.

Mr Trump, who has said countries can still avoid levies if they lower their tariffs or move manufacturing to the US, also announced on March 24 a

US$21 billion (S$28 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 Chung Euisun and Louisiana Governor Jeff Landry.

‘Liberation day’

Mr Trump said the April 2 announcement will be a “Liberation Day” for the US economy. The tariffs are aimed at shrinking a US$1.2 trillion global goods trade deficit by raising US levies to levels charged by other countries and counteracting their non-tariff trade barriers.

Mr Trump said in February he intended to impose auto tariffs “in the neighbourhood of 25 per cent“ and similar duties on semiconductors and pharmaceutical imports, but he later agreed to delay some auto tariffs after the three largest US automakers pushed for a waiver.

Mr Trump’s whirlwind tariff offensive since his January inauguration has been marked by threats, reversals and delays, sometimes within hours of imposition deadlines, as his trade team formulates policy on the fly.

So far, he has imposed new 20 per cent duties on Chinese imports, fully restored 25 per cent duties on global steel and aluminum imports and slapped

25 per cent tariffs

on imports from Canada and Mexico that do not comply with a North American trade agreement over the US fentanyl overdose crisis.

‘Dirty 15’

Two senior Trump officials – Treasury Secretary Scott Bessent and top White House Economic Adviser Kevin Hassett – said last week that the administration is expected to focus the much anticipated April 2 reciprocal tariff announcement on a narrower set of countries with the biggest trade surpluses and high tariff and non-tariff barriers.

Mr Bessent referred to these as the “Dirty 15”, a reference to 15 per cent of countries, while Mr Hassett told Fox Business the focus would be on 10 to 15 countries.

Mr Ryan Majerus, a former senior US Commerce Department official now at law firm King & Spalding, said regardless of whether sectoral tariffs came on April 2 or later, the administration would continue to be aggressive with Section 232 investigations, as already seen with lumber and copper.

“Given that the administration has already signalled concern over exemptions and exclusions, it seems clear that at least some countries will likely face new tariffs in early April,” he said. “But countries like the UK and India are certainly trying to avoid the tariffs through visits to the White House.”

A second White House official said countries rushing for early talks were unlikely to make sufficient progress to avoid tariffs completely, given the calculation also factors in non-tariff barriers that are harder to remove quickly.

In a request for public comments on reciprocal tariffs, the Office of the United States Trade Representative (USTR) said it was particularly interested in submissions for the largest US trade partners, and those with the highest goods trade surpluses.

USTR named Argentina, Australia, Brazil, Canada, China, the European Union, India, Indonesia, Japan, Korea, Malaysia, Mexico, Russia, Saudi Arabia, South Africa, Switzerland, Taiwan, Thailand, Turkey, Britain and Vietnam as being of particular interest, adding that they cover 88 per cent of total goods trade with the US.

Mr Trump’s comments came after he announced that any country that buys oil or gas from Venezuela will pay a 25 per cent tariff on any trades made with the United States.

This “secondary tariff” will take effect on April 2, Mr Trump said in a Truth Social post. He is imposing the move because, he said, Venezuela has sent “tens of thousands” of people to the United States who have a “very violent nature”. REUTERS