US President Donald Trump plans to announce new tariffs on products including cars, semiconductors, and pharmaceuticals to reduce trade deficits and boost domestic manufacturing. He intends to implement these levies within a month or sooner, following a previously announced 25% tariff on steel and aluminum. Trump insists that companies not manufacturing in the US will face tariffs, while those that do won’t. He emphasized a reciprocal tariff approach with countries like India, which imposes high tariffs on US imports, particularly in the automotive sector, making it difficult for US companies to sell there.
Washington DC:
US President Donald Trump is set to announce new tariffs on a variety of products as part of his objective to reduce America’s trade deficits, enhance domestic manufacturing, and meet other policy aspirations. The President indicated that fresh levies would be imposed on vehicles, semiconductors, and pharmaceuticals “within the next month or even sooner”.
The Trump administration has already unveiled a strategy to implement 25 percent tariffs on all steel and aluminum imports starting from March 12. Mr. Trump is also aiming to apply “reciprocal” taxes on US imports alongside his efforts to impose duties on cars, chips, and other goods.
“I plan to announce tariffs on cars, semiconductors, chips… drugs and pharmaceuticals, lumber, likely, and potentially other items over the next month or earlier,” he stated on Wednesday during a forum hosted by the Future Investment Initiative Institute.
“This will have a significant impact on America,” the President added, reiterating that companies that do not produce their goods in the US will incur tariffs.
“We are bringing our businesses back. If they don’t manufacture their product in America, they will simply have to pay a tariff,” he emphasized.
“If they do produce their product in America, they will not be subject to any tariffs, which will… It’s all going to bring trillions of dollars into our treasury or it will mean no taxes because we want a fair base.”
Since resuming office on January 20, Mr. Trump has implemented several tariffs and has frequently threatened to impose additional levies on imported goods. These range from broad, universal tariffs on foreign imports to targeted tariffs aimed at specific sectors, regions, or countries to compel others to comply with his policy demands.
According to Mr. Trump, his tariff actions are already yielding results. “I want to mention, while I’m here, that I’ve been contacted by some of the largest companies in the world. Because of our economic policies, tariffs, and tax incentives, they want to return to the United States. We’ll be announcing various major companies, the biggest actually, returning related to chips and cars,” he noted.
Tariffs On India
During a joint televised interview with billionaire Elon Musk on Tuesday, President Trump emphasized that India would not escape Washington’s reciprocal tariffs. In a discussion with Fox News’ Sean Hannity, he reiterated his position on global trade and the current tariff frameworks between the US and its trading partners.
He referred to his recent meeting with Prime Minister Narendra Modi in the US and remarked, “I told Prime Minister (Narendra) Modi yesterday – he was here – I stated, ‘Here’s our approach: reciprocal. Whatever you impose, I will impose.’
“He (PM Modi) responded, ‘No, no, I don’t like that.’ ‘No, no, whatever you charge, I’m going to charge.’ I’m applying that with every nation,” he added.
India imposes some of the highest tariffs on specific imports from the US, especially in the automobile sector, where duties on foreign cars can soar up to 100 percent. Mr. Musk, who sat next to President Trump, confirmed this by stating, “It’s 100 percent – auto imports are 100 percent.”
President Trump contended that such tariffs create significant barriers for American firms looking to sell in India unless they set up manufacturing sites there, which he deems “unfair” to the US economy.
Under his proposed reciprocal tariff framework, the US would apply the same tariff levels on Indian imports as India places on American products.