Trump: "Car tariffs around 25%... Semiconductors and pharmaceuticals over 25%"

"Time Will Be Given to Companies Before Tariff Announcement"

U.S. President Donald Trump announced a high possibility of imposing tariffs of around 25% on imported automobiles, semiconductors, and pharmaceuticals. With a 'tariff bomb' forecasted on both automobiles and semiconductors, which are major export items of Korea, Korean companies are on high alert. However, President Trump also stated that foreign companies would be given time to build factories in the U.S. to be exempt from tariffs, leaving room for negotiations with major governments and companies.

At a press conference held at his Mar-a-Lago resort in Florida, where he resides, President Trump responded to questions about the level of automobile tariffs by saying, "Probably around 25%, but I will talk about it on April 2." According to foreign media, April 2 is the day after officials of the second Trump administration submit a report containing various tariff options on imports into the U.S.

Regarding questions about tariffs on pharmaceuticals and semiconductors, President Trump said, "It will be more than 25%" and "It will be much higher within a year."

The U.S. currently imposes a 2.5% tariff on passenger cars. In contrast, the European Union (EU) applies a tariff of 10%, four times higher, on U.S. passenger cars. The U.S. imposes a 25% tariff on trucks, and President Trump's remarks indicate an intention to raise the passenger car tariff rate to the same level as trucks.

With President Trump's announcement of tariffs on items such as automobiles and semiconductors, Korean companies that rely on exports are expected to be directly hit. Last year, semiconductors accounted for the largest share of 20.8% of Korea's total exports, followed by automobiles at 10.4%, the second largest.

However, President Trump expressed his intention to give foreign companies "time to come in" by investing in the U.S. to avoid the tariff bomb.

Before announcing the new tariffs, he said, "I want to give companies time to enter the U.S. If they come in and build factories in the U.S., there will be no tariffs. We want to give them a little chance."

Earlier, President Trump had announced item-specific tariffs on automobiles, semiconductors, and pharmaceuticals. On the 10th, he officially announced a 25% tariff on all imported steel and aluminum products into the U.S.

As his first tariff measure after taking office, he announced a 25% tariff on all imports from Mexico and Canada and an additional 10% tariff on Chinese imports on top of existing tariffs, but he allowed a one-month grace period for Mexico and Canada. The 10% additional tariff on China has been enacted and is currently in effect.