Trump: Will announce additional tariffs on autos, lumber, chips in the coming days

Trump: Will announce additional tariffs on autos, lumber, chips in the coming days

In an unexpected move, U.S. President Donald Trump has announced plans to announce additional tariffs in the coming days, focusing on automobiles, lumber, and chips [1]. This upcoming wave of tariffs is expected to be more targeted than the broader, global tariffs Trump has previously considered [1].

Trump's tariff announcement, dubbed "Liberation Day," is scheduled for April 2 [1]. The announcement will include reciprocal tariffs aimed at retaliating against tariffs and other barriers from other countries, particularly longtime U.S. allies [1]. However, the administration is not planning to introduce sector-specific tariffs at the same time [1].

The impact of these tariffs is likely to be significant, straining relations with allied nations and prompting retaliation [1]. Only countries without tariffs on the U.S. and with which the U.S. has a trade surplus will be exempt from the reciprocal tariffs [1].

Trump's tariff announcement comes after initial tariffs imposed on Canada, Mexico, and China, as well as certain metals, resulted in market anxiety [1]. Despite the potential revenue benefits, the West Wing is serving a president who has long used major policy announcements as a way to generate headlines and maintain his political base [1].

It is essential to note that the situation remains fluid, and no decision is final until Trump announces it [1]. The administration's internal negotiations over how to implement the tariff program continue, with some of the most hawkish signals coming directly from Trump himself [1].

References:
[1] "Trump plans his tariff liberation day with more targeted push," BNN Bloomberg, March 22, 2023. [https://www.bnnbloomberg.ca/business/2023/03/22/trump-plans-his-tariff-liberation-day-with-more-targeted-push.html]