White House Confirms Trump’s Impending Auto Tariff Announcement

US President Donald Trump is set to unveil new tariffs on auto imports this Wednesday, the White House confirmed, escalating trade tensions with global partners. This move comes amid ongoing economic uncertainty fueled by previous tariffs imposed on key trading allies, including Canada, Mexico, and China.

A New Wave of Trade Tensions

Since reassuming office in January, Trump has taken an aggressive stance on trade, introducing tariffs that have already disrupted major industries. While he initially provided a temporary reprieve for automakers affected by North American trade policies, his administration has remained firm on imposing duties elsewhere.

His 25 percent tariffs on steel and aluminum imports have already weighed heavily on manufacturers, and now, the auto industry is next in line.

White House Press Secretary Karoline Leavitt confirmed the announcement, stating that Trump will hold a press conference at 4:00 pm (2000 GMT) to formally disclose the new auto tariffs.

This decision could pose significant challenges for manufacturers, who may struggle to absorb the added costs, potentially passing them on to consumers.

Market Impact and Business Concerns

The financial markets reacted swiftly to the news. Following Leavitt’s remarks, shares of major automakers took a hit—Ford’s stock fell by 1.8 percent, while General Motors saw a 1.9 percent decline.

Industry analysts warn that these additional tariffs could compound the financial strain on businesses already navigating policy volatility.

Trump’s trade policies extend beyond the auto sector. His administration has hinted at industry-specific tariffs targeting pharmaceuticals and semiconductors, further fueling concerns among business leaders.

With the April 2 deadline—dubbed “Liberation Day” by Trump—fast approaching, reciprocal tariffs aimed at addressing perceived trade imbalances are expected to be rolled out. However, the extent of these levies remains uncertain.

Uncertainty in Tariff Strategy

While Trump has maintained a tough stance on trade, his recent statements suggest some flexibility. Speaking to reporters on Monday, he hinted at potential exemptions for certain countries, saying, “I might give a lot of countries breaks,” without providing details.

In a Tuesday interview with Newsmax, he further elaborated, stating, “I’ll probably be more lenient than reciprocal, because if I was reciprocal, that would be very tough for people.” However, he also emphasized that he did not want to grant too many exceptions.

As the deadline for these tariffs looms, diplomatic discussions continue. EU trade chief Maros Sefcovic recently met with US Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer in an attempt to find common ground.

Following the meeting, Sefcovic reiterated the EU’s stance, stating, “The EU’s priority is a fair, balanced deal instead of unjustified tariffs. We share the goal of industrial strength on both sides.”

With Trump’s policy shifts keeping investors and global partners on edge, all eyes will be on Wednesday’s announcement to see how these auto tariffs will reshape international trade relations.

ALSO READ: Canadian Prime Minister Mark Carney: US Trade War Is Hurting American Economy, Consumers