President Donald Trump has intensified his trade strategy by prioritising tariffs on automobiles, pharmaceuticals, and other industries, while maintaining ambiguity about implementation timelines.
The announcements follow his earlier pledge to impose reciprocal tariffs from 2 April, though the administration’s messaging has left markets and international partners uncertain about the scope of these measures.
Trump’s emphasis on sectoral tariffs intends to bolster domestic industries perceived as critical for national security and economic resilience.
“We’ll be announcing cars very shortly,” Trump said at a Cabinet meeting. “We already announced steel, as you know, and aluminum.” Later, he expanded the list to include pharmaceuticals, as well as lumber and semiconductors, suggesting tariffs on these industries would materialise “down the road.”
The administration’s reciprocal tariffs framework, designed to mirror foreign trade barriers, remains central to Trump’s agenda. While he initially suggested sectoral tariffs would launch alongside reciprocal measures on April 2, he later clarified that “not all tariffs are included that day.”
A White House official confirmed “no final decision’s been made” on bundling sectoral tariffs with reciprocal ones, citing ongoing deliberations.
The US has already imposed 25% tariffs on steel and aluminium (effective 12 March) and initiated Section 232 national security investigations into lumber and copper. Earlier exemptions for Canada and Mexico under the United States-Mexico-Canada Agreement (USMCA) were partially reinstated until April 2, which shows the administration’s selective approach to trade partners.
Global reactions highlight growing unease. South Korea and other export-reliant economies are bracing for impacts on automotive and pharmaceutical sectors, while markets reacted positively to perceived softening of tariff plans. Trump’s assertion that “many countries may receive exemptions” from reciprocal tariffs contributed to a rise in major indices, though long-term compliance challenges remain unclear.
What’s more, the administration’s inconsistent messaging has left industries uncertain about timelines and exemptions, particularly regarding automotive tariffs, which Trump hinted might precede reciprocal measures.
As the April 2 deadline nears, international partners and markets await clarity on whether sectoral tariffs will align with reciprocal measures or follow a staggered rollout.