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White House says Trump to announce auto tariffs Wednesday
US President Donald Trump will announce tariffs on auto imports to the country Wednesday, the White House said in a move set to fuel tensions with trading partners ahead of further promised levies next week.
Since returning to the presidency in January, Trump has already imposed tariffs on major US trading partners Canada, Mexico and China -- but he previously offered automakers temporary reprieve from the levies affecting North America.
He has also slapped 25 percent duties on steel and aluminum imports, weighing on manufacturers.
On Wednesday, White House Press Secretary Karoline Leavitt told a briefing that Trump will hold a press conference at 4:00 pm (2000 GMT) "to announce tariffs on the auto industry."
Additional duties would mark a further blow to businesses reeling from policy uncertainty and earlier waves of levies, which economists warned could add to producers' costs.
These costs could eventually be passed on to consumers, if companies are unable to absorb them.
Shortly after Leavitt's remarks, shares in major automaker Ford slumped by 1.8 percent while those of General Motors dropped 1.9 percent.
Besides the automobile industry, Trump has also been eyeing sweeping sector-specific tariffs on industries like pharmaceuticals and semiconductors.
Wednesday's announcement on autos comes ahead of April 2, which Trump has dubbed "Liberation Day" for the world's biggest economy.
He has promised reciprocal levies on the date, tailored to different trading partners in an attempt to remedy practices that Washington deemed unfair.
It is unclear if sector-specific tariffs would be announced on April 2 as well, with the White House noting earlier this week that the situation remained fluid.
Trump told reporters on Monday that he might "give a lot of countries breaks" eventually, without elaborating.
On Tuesday, he told Newsmax: "I'll probably be more lenient than reciprocal, because if I was reciprocal, that would be very tough for people."
But he added that he did not want to have too many exceptions.
Hopes of a narrower tariff rollout had given financial markets a boost, but investors have also been jittery over rapid policy changes.
US partners have been furthering talks with Washington as Trump's reciprocal tariff deadline looms.
EU trade chief Maros Sefcovic met his American counterparts Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer this week.
Sefcovic said in a social media post after the talks that "the EU's priority is a fair, balanced deal instead of unjustified tariffs."
"We share the goal of industrial strength on both sides," he added.
L.Durand--AMWN