On Monday, U.S. President Donald Trump announced that automobile tariffs are imminent, although he indicated that not all of the proposed levies would be implemented on April 2, and certain countries might receive exemptions—an announcement that the stock market interpreted as a sign of flexibility amid ongoing market turmoil.
At the same time, Trump escalated a global trade conflict by imposing a 25% secondary tariff on any nation that imports oil or gas from Venezuela, which resulted in a surge in oil prices.
During a press conference at the White House, Trump stated that not all new tariffs would be announced on April 2 and mentioned that he may provide “a lot of countries” with tariff exemptions, but he did not elaborate further.
A White House official stated that the timeline for sector-specific tariffs on autos, pharmaceuticals, or semiconductor chips remains “TBD (to be determined)” and subject to the president’s discretion. The official also cautioned against anticipating a respite from tariffs, asserting that “the president is determined to implement strong reciprocal tariffs.”
Reports from Bloomberg and the Wall Street Journal indicated that the administration is refining its approach to the significant set of levies previously announced by Trump for April 2, potentially delaying the implementation of sector-specific tariffs.
U.S. stocks closed higher on Monday, buoyed by the expectation that the tariffs being announced next week might not be as extensive as initially thought. The S&P 500 index rose nearly 1.8%, reaching its highest level in over two weeks.
Conversely, Trump stated that tariffs on vehicles, pharmaceuticals, and aluminum would be enacted “in the very near future,” arguing that the U.S. needs these products in case of wars or other crises.
Later in the day, Trump reiterated that auto tariffs would be introduced in the coming days, with tariffs on lumber and semiconductor chips to follow “down the road.”
“We have been taken advantage of by every country,” Trump remarked after a cabinet meeting, projecting that the expected tariffs would generate “rather astronomical” revenue for the U.S., enabling tax rates to remain low or potentially decrease.
Trump, who previously mentioned that countries could avoid tariffs by lowering their own tariffs or moving manufacturing to the U.S., also announced on Monday a $21 billion investment from South Korea’s Hyundai Motor Group in the United States. This includes a $5.8 billion new steel plant in Louisiana, shared alongside Hyundai Chairman Euisun Chung and Louisiana Governor Jeff Landry.
Calling April 2 a “Liberation Day” for the U.S. economy, Trump asserted that the tariffs aim to reduce a $1.2 trillion global goods trade deficit by aligning U.S. tariffs with those of other countries and countering their non-tariff trade barriers.
In February, Trump suggested imposing auto tariffs “around 25%” and similar duties on semiconductor and pharmaceutical imports but later agreed to postpone some auto tariffs following requests from the three largest U.S. automakers.
Trump’s rapid tariff initiatives since his inauguration in January have seen a mix of threats, U-turns, and delays, often announced close to imposition deadlines as his trade team develops policy dynamically.
To date, he has enacted a new 20% duty on Chinese imports, reinstated 25% duties on global steel and aluminum imports, and applied 25% tariffs on imports from Canada and Mexico not in compliance with North American trade regulations related to the U.S. fentanyl overdose crisis.
Two senior Trump officials, Treasury Secretary Scott Bessent and top White House Economic Adviser Kevin Hassett, stated last week that the administration is expected to concentrate the April 2 reciprocal tariff announcement on a more limited group of countries with the largest trade surpluses and high tariff and non-tariff barriers.
Bessent referred to these targeted nations as the “Dirty 15,” while Hassett noted the focus would be on 10-15 countries.
Ryan Majerus, a former senior U.S. Commerce Department official now with the law firm King & Spalding, suggested that whether sectoral tariffs are introduced on April 2 or later, the administration’s aggressive stance with Section 232 investigations will continue, as evidenced by existing concerns regarding lumber and copper.
“Given the administration’s signals regarding exemptions and exclusions, it seems likely that at least some countries will face new tariffs in early April,” he said, adding that countries like the UK and India are actively trying to negotiate exemptions through direct discussions with the White House.
A second White House official indicated that countries seeking rapid talks are unlikely to make enough progress to completely avoid tariffs, particularly due to the complicated nature of non-tariff barriers, which are more challenging to address quickly.
The Office of the United States Trade Representative requested public comments on reciprocal tariffs, emphasizing interest in feedback from the largest U.S. trading partners and nations with significant trade surpluses.
USTR identified Argentina, Australia, Brazil, Canada, China, the European Union, India, Indonesia, Japan, Korea, Malaysia, Mexico, Russia, Saudi Arabia, South Africa, Switzerland, Taiwan, Thailand, Turkey, the UK, and Vietnam as priority
