MW Trump threatens 25% tariffs on auto, semiconductor, pharmaceutical imports

By Mike Murphy

President Donald Trump said Tuesday that he will likely impose tariffs of 25% or more on imports of cars, semiconductors and pharmaceutical products.

Speaking to reporters at his Mar-a-Lago club in Florida, Trump said these latest tariffs could be announced on April 2. The Trump administration expects to complete a review of its trade policies by April 1.

When asked Tuesday about tariffs on foreign-made automobiles, Trump said "it'll be in the neighborhood of 25%."

As for pharmaceuticals and semiconductors, "it'll be 25% and higher," Trump said, "and it'll go very substantially higher over a course of a year."

Trump said additional tariff hikes will come in stages, over time, to give companies "a little bit of a chance" to relocate factories in the U.S.

Also read: What does the Fed really think about Trump tariffs and inflation? We're about to get more clues.

Last week, Trump announced tariffs of 25% on imports of steel and aluminum, and earlier this month raised tariffs on imports from China by 10%. Tariffs of 25% on imports from Canada and Mexico are on hold until early March, pending commitments to border security and preventing drug trafficking.

He also announced tit-for-tat reciprocal tariffs last week against countries that have tariffs on U.S. goods, blaming them for trade deficits. "For many years the United States has been treated unfairly by trading partners, both friend and foe," Trump said in a memorandum last week.

It was unclear if there would be any exemptions from the tariffs on autos, semiconductors and pharmaceuticals. Critics warn such moves will increase consumer prices in the U.S. and lead to an all-out global trade war.

Trump's comments had little effect on stocks after hours, as investors appeared to be taking a wait-and-see attitude. Semiconductor companies such as Nvidia $(NVDA)$ , Advanced Micro Devices $(AMD)$, Micron $(MU)$ and Intel Corp. $(INTC)$ saw swings of less than 1% in after-hours trading, while automakers Ford $(F)$, General Motors $(GM)$ and Stellantis $(STLA)$ were little changed, as were pharma stocks such as Pfizer $(PFE)$, Amgen $(AMGN)$ and Merck $(MRK)$.

-Mike Murphy

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February 18, 2025 22:36 ET (03:36 GMT)

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