Not just steel and aluminum! Trump plans to impose a 25% tariff on the automotive, chip, and pharmaceutical industries.

President Trump of the United States said that he may impose tariffs of about 25% on imports of cars, semiconductors, and drugs, with an announcement expected as early as April 2. If the new tariffs are implemented, it will expand the President's trade war. Trump previously announced a 25% tariff on steel and aluminum, set to take effect in March, but his comments on Tuesday were the most detailed so far, specifying other industries that will be affected by the new barriers. "I might tell you on April 2, but it will be around 25%," Trump told reporters at his Mar-a-Lago club when asked about his car tariff plans. When asked about similar tariffs on drugs and semiconductor chips, Trump said, "The rates will be around 25% or even higher, and tariffs will increase significantly over the course of a year." Trump said he wants to give companies "time to get in" before announcing the new import taxes. He said, "When they come in the country, and they build their factory, there are no taxes, so we hope to give them a little bit of a chance." The new taxes on cars will have a broad impact on the industry. About 8 million passenger cars and light trucks entered the US last year, accounting for about half of US auto sales. European automakers such as Volkswagen and Asian automakers like Hyundai are expected to be the most affected as a significant portion of their sales in the US are imports. Trump did not specify whether these measures are aimed at specific countries or apply to all cars imported into the US. It is not clear yet if cars produced under the North American Free Trade Agreement with Canada and Mexico would be exempt from tariffs if they go into effect. The American Automotive Policy Council, representing Detroit automakers, said cars produced in North America that meet the requirements of the agreement should be exempt from the new taxes. Industry experts, lobbying groups, and executives have warned that imposing high new tariffs on the industry will have wide-ranging ripple effects, including consumers facing higher prices and the industry facing high new costs. Other countries have promised to retaliate swiftly once Trump's tariffs are implemented, targeting politically sensitive goods made in Republican states. The EU's top trade official is visiting Washington this week to meet with other trade officials in a last-ditch effort to avoid being hit with tariffs in April. However, Trump has already stated that if he deems trade relationships to be unbalanced, no country will be exempt from tariffs. Trump has also threatened to impose additional tariffs as part of his efforts to rebalance the US global trade relationships. The President has long accused other countries of exploiting the US and sees import tariffs as a way to bring industry back to the US and generate more revenue. Many economists argue that this will raise consumer prices for Americans and hinder efforts to combat inflation. The President has said that he will implement "reciprocal" tariffs based on other countries as early as April, although specific details are still being determined. He has also threatened to impose tariffs on some of the US's biggest trading partners, such as already imposing a 10% tariff on China and a 25% tariff on Canada and Mexico, at least until March 4. These measures will be implemented one after the other, meaning that Mexican and Canadian producers in some industries may face up to three different tariffs. In conclusion, if Trump's measures are implemented, they will reshape supply chains and trade flows, as well as prices in the US. Tariffs are paid by importers and are typically passed on to consumers, although sometimes they are offset by price cuts from abroad.