President Donald Trump is anticipated to unveil new tariffs on automobiles this Wednesday afternoon.
The exact details regarding the extent of these new tariffs remain uncertain. According to a report from The Wall Street Journal on Wednesday, the duties may only target “finished” vehicles, excluding auto parts. NBC News was unable to confirm this information immediately.
Following the announcement from White House press secretary Karoline Leavitt, shares of the largest U.S. automakers initially dipped, but rebounded after the Journal’s report emerged.
Mexico stands as the largest provider of auto imports to the U.S., representing about 14% of all vehicles sold in the country, with Japan, South Korea, the European Union, and Canada following behind.
This announcement comes just a week before Trump’s planned “Liberation Day” on April 2, when he intends to introduce numerous tariffs against many of America’s major trading partners—including longstanding allies—targeting a wide array of goods. In recent days, Trump has hinted that a separate statement regarding auto tariffs might be released prior to next week.
Trump has previously shown willingness to listen to concerns from U.S. automakers about the detrimental impact of tariffs on their operations. He granted them a one-month delay on duties concerning Canada and Mexico, which eventually transitioned into a permanent waiver of tariffs on all goods encompassed by the U.S.-Mexico-Canada free trade agreement.
Trump’s inconsistent announcements have unsettled markets in recent weeks, increasing economic uncertainty and contributing to a decline in both business and consumer confidence.
While some economic indicators suggest that the U.S. economy remains strong, the Commerce Department reported on Tuesday a surprising 0.3% drop in orders for business equipment placed with U.S. factories last month, marking the first decline since October.
Additionally, S&P Global revealed this week that U.S. manufacturing activity has fallen back into contraction territory, attributed to rising material costs linked to tariffs, while the outlook for the services sector has worsened.
