Home Live: Trump slaps 25% tariffs on auto imports, says countries will be ‘pleasantly surprised’ by reciprocal duties

Live: Trump slaps 25% tariffs on auto imports, says countries will be ‘pleasantly surprised’ by reciprocal duties

· March 26, 2025 · 0 Comment
  • President Trump has announced an executive order imposing a 25% tariff on all cars and light trucks not made in the US.
  • Trump cast the measure as “modest,” though it will be a significant increase from the current 2.5% tariff rate. The tariffs will take effect on April 2, and the US will begin collecting duties on April 3, Trump said.
  • “This will continue to spur growth like you haven’t seen,” he added. “I think our automobile business will flourish like it has never flourished before.”
  • Trump also said additional tariffs on lumber and pharmaceuticals are coming.
  • You can watch the livestream of the president’s remarks on auto tariffs below:
  • St. Louis Fed president Alberto Musalem offered a cautionary view on inflation as central bank policymakers continue to wrestle with the potential direct and indirect effects of higher tariff rates.
  • Yahoo Finance’s Jennifer Schonberger reports:
  • Read more here.
  • The White House press secretary confirmed that President Trump is set to unveil new auto tariffs during a 4 p.m. press conference on Wednesday.
  • The looming tariffs sent auto stocks tumbling to session lows. GM (GM) and Ford (F) were down close to 2%, while Tesla (TSLA) sank over 6%, giving back a chunk of its rally over the past several sessions.
  • Bloomberg reports:
  • Read more here.
  • Optimism among company chief financial officers fell in the first quarter as tariff risks and uncertainty clouded the outlook among business executives that had previously be buoyed by President Donald trump’s election victory, according to a survey by two Federal Reserve banks and Duke University.
  • Reuters reports:
  • Read more here
  • Canada’s Transport Minister Chrystia Freeland has frozen all rebate payments for Tesla (TSLA) and banned the electric-vehicle maker from future EV rebate programs due to tariffs.
  • Reuters reports:
  • Read more here
  • Top Trump administration officials have argued that tariffs won’t be inflationary or at least that any inflation would be short-lived.
  • In a letter, Sen. Elizabeth Warren expressed skepticism of this idea, asking whether tariffs would cause companies to raise prices — both directly and indirectly.
  • Yahoo Finance’s Jennifer Schonberger reports:
  • Read more here.
  • Another shift in the tariff mood music from President Trump, who has injected more uncertainty about what to expect in the next wave of trade measures.
  • Trump hinted that he could limit the amount of relief granted to trading partners, as an April 2 date for reciprocal tariffs nears.
  • “I know there are some exceptions, and it’s an ongoing discussion — but not too many exceptions,” Trump said in a Tuesday interview with Newsmax. “No, I don’t want to have too many exceptions.”
  • The White House has come under intense lobbying from nations seeking relief from the tariffs in next week’s announcement — described as “the big one” and ‘Liberation Day” by Trump. He has promised the like-for-like duties will be imposed on all US trade partners, in retaliation for perceived unfairness in trade.
  • In recent days, reports emerged that Trump might unveil a narrower package of measures than anticipated, by targeting the “dirty 15” of worst offenders. In addition, the president suggested there could be some “flexibility” in the trade policy move.
  • Trump is speeding up plans to impose fresh tariffs on copper, Bloomberg has reported.
  • The accelerated deadline puts pressure on copper (HG=F) traders trying to front-run the expected duties. That has driven a huge wave of demand in the US, spurring a rally in prices of the industrial metal.
  • Bloomberg reports:
  • Read more here.
  • Yahoo Finance’s Brooke DiPalma reports that retailers have been cautioning that the consumer environment isn’t improving and tariff policies are beginning to weigh on outlooks.
  • In another sign that US consumers are growing more pessimistic about the economy, US consumers’ expectations about the economy dropped to a 12-year low as Americans assessed how shifting economic policies could impact their wallets.
  • This comes as tariffs create uncertainty for retailers and their customers. A recent report from PWC found that a scenario in which President Trump keeps tariffs on imports from China, Mexico, and Canada and places reciprocal tariffs on the rest of the world could impact the consumer products sector by up to $134 billion, roughly five times the current tariff amount of $27 billion.
  • The vibes have been off in retailers’ earnings calls as consumer-facing companies have started to weigh in on the impacts of President Trump’s tariffs and issue dimmer outlooks.
  • “There’s a lot of changes that we’re seeing day-to-day happening with tariffs,” Macy’s CFO Adrian Mitchell added on the company’s earnings call. “We recognize the inflationary pressure.”
  • Read more here.
  • Copper futures (HG=F) on New York’s Comex hit a record high as traders brace for potential hefty tariffs from Trump on the key industrial metal.
  • Read more here
  • The Big Three US automakers may have a temporary reprieve from “tremendously inflationary” tariffs on Canada and Mexico, but another set of duties is headed their way — and soon.
  • President Trump signaled at a Cabinet meeting on Monday that sector-specific duties on autos are coming in the next few days, per Reuters. But he didn’t make clear whether he will impose them on April 2 in the “Liberation Day” wave of trade measures.
  • “We are going to be doing automobiles, which you’ve known about for a long time,” Trump told reporters at the White House, Politico reported. “We’ll be announcing that fairly soon, over the next few days probably. And then April 2 comes. That will be reciprocal tariffs.”
  • Auto stocks have come under pressure in the face of promised tariffs. While Ford (F), GM (GM), and Stellantis (STLA) shares moved higher after February’s reprieve, the threat of new sector-specific tariffs and reciprocal duties on key regions like Europe still loomed.
  • Other sectors are still on the hook, Trump warned at the Cabinet meeting. Tariffs on pharmaceuticals and aluminum are coming in “the very near future”, while duties on chips and lumber are “down the road”, he said, according to Reuters.
  • Aerospace trade groups in Canada have warned that escalating US tariffs and Canadian retaliatory duties could hike costs on aircraft parts and engine repairs.
  • The trade dispute is expected to intensify as a new round of tariffs looms.
  • Reuters reports:
  • Read more here
  • Another sign that the Trump administration may soften reciprocal tariffs came from the president himself on Monday.
  • “Well, I may give a lot of countries breaks,” President Trump told reporters on Monday after he and Gov. Jeff Landry delivered remarks celebrating a new $5 billion steel plant.
  • “It’s reciprocal, but we might be even nicer than that,” Trump continued. “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 recent days, White House officials have attempted to signal more leeway on Trump’s like-for-like tariffs, which cheered markets, but many questions remain on how far Trump will go in the next phase of his trade agenda.
  • Adding to those questions, Trump said Monday he will announce additional tariffs on autos, lumber, and chips in the next few days.
  • Watch Trump’s full remarks below:
  • Just as US trade policy appeared to be easing on Monday, President Trump introduced a “secondary tariff” on Venezuela that will take effect on April 2. Under the new measure, countries that purchase petroleum products from Venezuela will face a 25% across-the-board tariff when trading with the US.
  • In a social media post, the president cited “numerous reasons” for imposing the tariff, including Venezuela’s “hostility” to the US and criminals entering the country.
  • “Therefore, any Country that purchases Oil and/or Gas from Venezuela will be forced to pay a Tariff of 25% to the United States on any Trade they do with our Country. All documentation will be signed and registered, and the Tariff will take place on April 2nd, 2025, LIBERATION DAY IN AMERICA.”
  • US business activity rose in March, but worries over import tariffs clouded the outlook.
  • Reuters reports:
  • Read more here
  • Yahoo Finance’s Josh Schafer writes:
  • Read more here.
  • Walmart (WMT) and Target (TGT) are clashing with suppliers over price hikes on household goods. The talks will decide how much prices rise and whether some products stay on shelves.
  • Reuters reports:
  • Read more here.
  • Fears of a full-on trade war are easing after weekend reports that Trump’s ‘Liberation Day’ reciprocal tariffs will be more measured than threatened.
  • The White House has watered down the April 2 like-for-like tariffs on all US trading partners, Bloomberg and The Wall Street Journal reported. That has helped cool worries about the potentially huge impact on global trade and the economy from the duties.
  • The Wall Street Journal said Trump’s administration has narrowed its focus for the tit-for-tat duties to the “dirty 15” countries — those with a trade balance unfavorable to the US that make up about 15% of the total.
  • In addition, Trump will hold off on bringing in proposed duties on chips, cars, and drugs on April 2 as previously expected, the media outlets said.
  • Bloomberg reported:
  • Read more here.

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