Trump floats 25% tariffs on US car, drug, chip imports – The Irish Times

Potential New Tariffs: A Look at the Impact

President Donald Trump has indicated that he is highly likely to impose tariffs on a wider range of imported goods, including automobiles, semiconductors, and pharmaceuticals. These tariffs are expected to be around 25%, with the potential to rise even higher.

“I probably will tell you that on April 2nd, but it’ll be in the neighbourhood of 25 percent,” Mr. Trump told reporters at his Mar-a-Lago club when asked about his plan for car tariffs.

When pressed about tariffs on pharmaceuticals and semiconductor chips, the president stated, “It’ll be 25 percent and higher, and it’ll go very substantially higher over a course of a year.” Mr.Trump explained that he wants to give companies time to adjust before implementing these new import taxes.

Impact on Industries

The potential tariffs have significant implications for various industries. New levies on automobiles would heavily impact the US auto market, as approximately half of all US vehicle sales are imports. European carmakers like Volkswagen and Asian companies like Hyundai would be among the most affected.

The semiconductor industry would also face substantial challenges. Malaysia and Singapore, major exporters of chips, would be especially vulnerable. South Korea and Japan,major car manufacturing powerhouses,could also be significantly impacted if these tariffs are added to existing ones.

Countries most exposed to potential tariffs on passenger cars include Mexico and South Korea, where exports to the US constitute 2.4% and 1.8% of their respective GDP, according to Bloomberg Economics.

Global Response

other nations have already pledged swift retaliation if these tariffs are implemented, aiming to target politically sensitive goods produced in Republican states. The European Union’s top trade official is scheduled to meet with American counterparts this week in a last-ditch effort to avoid tariffs. However, President Trump has indicated that it is challenging for individual countries to avoid these tariffs if he perceives the trade relationship as unbalanced.

Commerce Secretary Confirmation

Amidst this unfolding trade controversy, president Trump has secured Senate confirmation for Howard Lutnick, the billionaire chairman and CEO of Wall Street firm Cantor Fitzgerald, as the new Commerce Secretary. Mr. Lutnick has advised President Trump to pursue country-specific tariffs to achieve “reciprocity” in US trading relationships. – Bloomberg/Reuters

President Trump’s potential expansion of tariffs signifies a significant escalation in the trade war, with far-reaching consequences for both the US and the global economy. Businesses and individuals alike need to closely monitor the situation and prepare for potential disruptions.

– What specific strategies can businesses employ to lessen the financial blow of potential tariffs on imported goods and services?

Tariffs 2.0: An Interview with Global Trade Expert Dr. Amanda hart

With President Trump’s potential expansion of tariffs on the horizon, archyde News sits down with renowned global trade expert and University of chicago Professor, Dr. Amanda Hart, to discuss the potential impacts and concerns about this significant trade escalation.

President Trump’s Tariff Announcements

Dr. Hart, President Trump has hinted at imposing tariffs of around 25% on a wide range of imported goods, including automobiles, semiconductors, and pharmaceuticals. Could you share your insights on these potential tariffs?

absolutely. These proposed tariffs, if implemented, would mark a significant escalation in the US trade war, with extensive implications for both domestic and global economies.

Impact on Industries

What specific industries do you think will be most affected,and how might these tariffs disrupt their operations?

The automobile industry is expected to be heavily hit,with approximately half of all US vehicle sales being imports. European and Asian carmakers would undoubtedly face challenges. Moreover,the semiconductor industry,which supports a wide range of tech sectors,would also face substantial hurdles,especially countries like Malaysia,Singapore,South Korea,and Japan.

Global response and retaliation

How do you anticipate othre nations will respond to these potential US tariffs?

We can expect swift retaliation from other nations, aiming to target politically sensitive goods produced in Republican states, as we’ve seen in previous trade disputes. The European Union, as an example, has already threatened to impose tariffs on US goods like Harley-Davidson motorcycles and bourbon.

Commerce secretary Confirmation

How might the recent confirmation of Howard Lutnick as Commerce Secretary influence this situation?

Mr. Lutnick’s appointment could potentially lead to more country-specific tariffs, targeting those countries deemed to have disproportionately benefited from trade with the US. However, this strategy could also escalate trade tensions and damage US relationships with its trading partners.

Preparing for Disruptions and Uncertainties

lastly, Dr. Hart, what advice would you give to businesses and individuals navigating this uncertain trade landscape?

Diversifying supply chains, building up reserves, and closely monitoring trade developments will be crucial. Businesses should also engage in advocating for their interests, as policymakers’ decisions will significantly impact their operations.

What do you think businesses can do to mitigate the potential consequences of these tariffs? Share your thoughts in the comments below!