Palm Beach, Florida – President Donald Trump announced on Tuesday his plans to impose tariffs of approximately 25% on auto imports, as well as semiconductors and pharmaceuticals delivered to the United States, effective as early as April 2.

These new tariffs come on the heels of Trump’s recent implementation of a 10% tariff on goods from China and 25% tariffs on steel and aluminum imports. In his statement from his resort in Mar-a-Lago, Florida, Trump expressed his intention to further raise the tariffs on semiconductor chips and drugs in the future.

Trump emphasized that the tariffs on these products could increase significantly over the course of a year while also providing affected companies the opportunity to relocate their manufacturing facilities to the United States to avoid the tariffs.

The President’s announcement follows his directive for an investigation into other countries’ tax and tariff policies, laying the groundwork for reciprocal tariffs to go into effect on April 2, according to Howard Lutnick, Trump’s nominee for Commerce Secretary.

Trump’s latest move highlights his desire for a more balanced trade relationship with foreign markets and the reshoring of strategic industries. He has consistently criticized what he views as unjust treatment of U.S. exports by other countries.

Concerns have been raised about the potential broad impact of the new tariffs, warning of higher prices for consumers and increased costs for businesses. Consumers are expected to bear the brunt of the tariffs, particularly in the automotive sector, where car prices could see a significant rise.

Details remain unclear on whether the 25% tariffs will apply universally to all countries or if cars produced in Mexico and Canada under a free trade agreement signed during Trump’s first term will be exempt. The semiconductor industry, dominated by U.S. companies like Nvidia, has long relied on outsourcing to Asia for chip manufacturing, a practice that could be affected by the new tariffs.

In the pharmaceutical industry, the U.S. is the largest importer of drugs and related goods, with over $176 billion in purchases in 2023. European, Indian, and Chinese firms are anticipated to be heavily impacted by the new tariffs, with countries like Ireland, Germany, Switzerland, India, and China among the top pharmaceutical importers.