Trump Announces Imminent Car Tariffs 'in next few days'
The president indicated that he plans to announce pharmaceutical tariffs in the "not too distant" future.
TroibNews 
President Donald Trump indicated on Monday that he might announce new tariffs on imported cars as early as this week, as his administration prepares a comprehensive "reciprocal tariff" package that is set to impact a broad range of countries on April 2.
"We are going to be doing automobiles, which you've known about for a long time," Trump told reporters at the White House. "We'll be announcing that fairly soon, over the next few days probably. And then April 2 comes. That will be reciprocal tariffs."
During a Cabinet meeting earlier that day, Trump reiterated his commitment to car tariffs, stating that he plans to announce them "very shortly." He also mentioned intentions to address pharmaceuticals "at some point in the not too distant [future] because we have to have pharmaceuticals."
These comments come just over a week before Trump is expected to reveal a comprehensive plan to impose reciprocal tariffs on major trading partners like China and the European Union, reflecting the trade barriers faced by American exporters.
There remains uncertainty about whether the April 2 announcement will encompass both the reciprocal tariffs and specific “sectoral” tariffs aimed at protecting and fostering certain key industries, such as autos, pharmaceuticals, and semiconductors.
When asked for clarification on Monday, Trump initially stated that the April 2 announcement would cover "everything." However, he later added, "not all tariffs are included that day."
Furthermore, Trump suggested that the U.S. reciprocal tariffs may not fully align with the trade barriers that his administration believes American exporters encounter in various markets. "We may take less than what they're charging, because they've charged us so much, I don't think they could take it. In other words, they've charged us so much that I'm embarrassed to charge them what they've charged us," Trump emphasized.
In 2024, the United States imported $471 billion worth of automotive products, which included $214 million in passenger cars. The majority of these auto imports came from five countries: Mexico, Japan, South Korea, Canada, and Germany. Additionally, the U.S. imported around $210 billion in pharmaceutical products and approximately $62 billion in semiconductors during the same year.
A White House official, who spoke on the condition of anonymity due to ongoing deliberations, noted that the timing of any sectoral tariffs is still being discussed. “Obviously POTUS has talked a lot about sectoral tariffs, but we may have sectoral tariffs on April 2 and we may not,” the official stated. “No final decisions have been made yet on sectoral tariffs being tacked onto” the reciprocal tariffs that are expected to be announced next week.
Commerce Secretary Howard Lutnick mentioned at Monday's Cabinet meeting that the Trump administration plans to establish the “External Revenue Service” on April 2 to manage the collection of tariff revenue. Currently, this function is performed by U.S. Customs and Border Protection; however, Trump has proposed creating the External Revenue Service to handle this responsibility instead.
In an extensive trade executive order signed on January 20, Trump directed Treasury Secretary Scott Bessent to examine the issue in conjunction with Lutnick and Department of Homeland Security Secretary Kristi Noem. Customs and Border Protection is presently part of the Department of Homeland Security but had been under the Treasury Department before the September 11, 2001, attacks.
Sophie Wagner for TROIB News
"We are going to be doing automobiles, which you've known about for a long time," Trump told reporters at the White House. "We'll be announcing that fairly soon, over the next few days probably. And then April 2 comes. That will be reciprocal tariffs."
During a Cabinet meeting earlier that day, Trump reiterated his commitment to car tariffs, stating that he plans to announce them "very shortly." He also mentioned intentions to address pharmaceuticals "at some point in the not too distant [future] because we have to have pharmaceuticals."
These comments come just over a week before Trump is expected to reveal a comprehensive plan to impose reciprocal tariffs on major trading partners like China and the European Union, reflecting the trade barriers faced by American exporters.
There remains uncertainty about whether the April 2 announcement will encompass both the reciprocal tariffs and specific “sectoral” tariffs aimed at protecting and fostering certain key industries, such as autos, pharmaceuticals, and semiconductors.
When asked for clarification on Monday, Trump initially stated that the April 2 announcement would cover "everything." However, he later added, "not all tariffs are included that day."
Furthermore, Trump suggested that the U.S. reciprocal tariffs may not fully align with the trade barriers that his administration believes American exporters encounter in various markets. "We may take less than what they're charging, because they've charged us so much, I don't think they could take it. In other words, they've charged us so much that I'm embarrassed to charge them what they've charged us," Trump emphasized.
In 2024, the United States imported $471 billion worth of automotive products, which included $214 million in passenger cars. The majority of these auto imports came from five countries: Mexico, Japan, South Korea, Canada, and Germany. Additionally, the U.S. imported around $210 billion in pharmaceutical products and approximately $62 billion in semiconductors during the same year.
A White House official, who spoke on the condition of anonymity due to ongoing deliberations, noted that the timing of any sectoral tariffs is still being discussed. “Obviously POTUS has talked a lot about sectoral tariffs, but we may have sectoral tariffs on April 2 and we may not,” the official stated. “No final decisions have been made yet on sectoral tariffs being tacked onto” the reciprocal tariffs that are expected to be announced next week.
Commerce Secretary Howard Lutnick mentioned at Monday's Cabinet meeting that the Trump administration plans to establish the “External Revenue Service” on April 2 to manage the collection of tariff revenue. Currently, this function is performed by U.S. Customs and Border Protection; however, Trump has proposed creating the External Revenue Service to handle this responsibility instead.
In an extensive trade executive order signed on January 20, Trump directed Treasury Secretary Scott Bessent to examine the issue in conjunction with Lutnick and Department of Homeland Security Secretary Kristi Noem. Customs and Border Protection is presently part of the Department of Homeland Security but had been under the Treasury Department before the September 11, 2001, attacks.
Sophie Wagner for TROIB News
Find more stories on Business, Economy and Finance in TROIB business
