President Donald Trump claimed the EU lowered its 10% auto tariff to match the US’s 2.5%, but the European Commission denied this
President Donald Trump said he is contemplating imposing 25% or more tariffs on automobiles, semiconductors and pharmaceuticals to boost US manufacturing.
Speaking at Mar-a-Lago, he said the tariffs could rise “substantially” throughout the year. The announcement is expected on April 2, following a trade report by his administration.
He assured domestic companies would have a phase-in period to adjust production before the tariffs take effect and encouraged businesses to set up US factories to avoid the levies.
The announcement comes ahead of a key meeting between European Union trade chief Maros Sefcovic and Trump’s economic advisers.
In his remark, Trump also claimed the EU lowered its 10% auto tariff to match the US’s 2.5%, but the European Commission denied this, stating no tariff cuts were offered.
The US trade deficit with the EU stood at $235.6 billion in 2024, per USTR data.
Background
Trump’s administration previously hinted at tariffs on industries crucial to national security but hadn’t specified rates.
Last week, Trump imposed 25% tariffs on imported steel and aluminum. He previously raised tariffs on Chinese goods by 10%.
However, higher import costs could affect industries relying on foreign components. The tariffs may also spark trade tensions, particularly with major suppliers like China, Japan, and the EU.