U.S. President Donald Trump said on Monday automobile tariffs are coming soon even as he indicated that not all of his threatened levies would be imposed on April 2 and some countries may get breaks, a move Wall Street took as a sign of flexibility on a matter that has roiled markets for weeks.
At the same time, Trump opened another front in a global trade war by slapping 25% secondary tariffs on any country that buys oil or gas from Venezuela, a directive that sent oil prices climbing.
At the White House, Trump told reporters not all the new tariffs would be announced on April 2, and said he may give "a lot of countries" breaks on tariffs, but provided no details.
A White House official declined to say exactly when sector-specific tariffs on autos, pharmaceuticals or semiconductor chips would come into effect, noting that was still "TBD (to be determined) and at the president's discretion."
The official cautioned against expecting a tariff reprieve, adding, "The president is determined to implement reciprocal tariffs that are very strong. People should expect that."
Bloomberg and the Wall Street Journal reported earlier that the administration was narrowing its approach to the broad batch of levies Trump has been saying for weeks would be imposed on April 2, and could delay sector-specific tariffs.
U.S. stocks ended Monday broadly higher on optimism that the tariffs set to be detailed next week may not be as extensive as expected. The S&P 500 index gained nearly 1.8% to close at its highest in more than two weeks.
Meanwhile, Trump said the U.S. would impose tariffs on autos, pharmaceuticals and aluminum in "the very near future," arguing that the U.S. would need all those products in the event of wars or other problems.
The auto tariffs would come in the next few days, Trump said later in the day, adding that tariffs on lumber and semiconductor chips would follow "down the road."
"We've been ripped off by every country," Trump said after a meeting of his cabinet, predicting that the expected tariffs would raise "rather astronomical" amounts of money for U.S. coffers, allowing tax rates to remain low or come down.
Trump, who has said countries can still avoid levies if they lower their tariffs or move manufacturing to the U.S., also announced on Monday a $21 billion investment by South Korea's Hyundai Motor Group (005380.KS), opens new tab in the United States.
The investment would include a $5.8 billion new steel plant in Louisiana, he said at the White House alongside Hyundai Chairman Euisun Chung and Louisiana Governor Jeff Landry.
'LIBERATION DAY'
Trump said the April 2 tariffs will mark a "Liberation Day" for the U.S. economy. They are aimed at shrinking a $1.2 trillion global goods trade deficit by raising U.S. levies to levels charged by other countries and counteracting their non-tariff trade barriers.
Trump said in February he intended to impose auto tariffs "in the neighborhood of 25%" and similar duties on semiconductors and pharmaceutical imports, but he later agreed to delay some auto tariffs after the three largest U.S. automakers pushed for a waiver.
Trump's whirlwind tariff offensive since his January inauguration has been marked by threats, reversals and delays, sometimes within hours of imposition deadlines, as his trade team formulates policy on the fly.
So far, he has imposed new 20% duties on Chinese imports, fully restored 25% duties on global steel and aluminum imports and slapped 25% tariffs on imports from Canada and Mexico that do not comply with a North American trade agreement over the U.S. fentanyl overdose crisis.
'DIRTY 15'
Two senior Trump officials - Treasury Secretary Scott Bessent and top White House Economic Adviser Kevin Hassett - said last week the administration is expected to focus the April 2 reciprocal tariff news on a narrower set of countries with the biggest trade surpluses and high tariff and non-tariff barriers.
Bessent referred to these as the "Dirty 15," a reference to 15% of countries, while Hassett told Fox Business the focus would be on 10-15 countries.
Ryan Majerus, a former senior U.S. Commerce Department official now at law firm King & Spalding, said no matter if sectoral tariffs came on April 2 or later, the administration would remain aggressive with Section 232 investigations, as already seen with lumber and copper.
"Given that the administration has already signaled concern over exemptions and exclusions, it seems clear that at least some countries will likely face new tariffs in early April," he said. "But countries like the UK and India are certainly trying to avoid the tariffs through visits to the White House."
A second White House official said countries rushing for early talks were unlikely to make sufficient progress to avoid tariffs completely, given the calculation also factors in non-tariff barriers that are harder to remove quickly.
In a request for public comments, opens new tab on reciprocal tariffs, the Office of the United States Trade Representative expressed particular interest in submissions for the largest U.S. trade partners, and those with the highest goods trade surpluses.
USTR named Argentina, Australia, Brazil, Canada, China, the European Union, India, Indonesia, Japan, Korea, Malaysia, Mexico, Russia, Saudi Arabia, South Africa, Switzerland, Taiwan, Thailand, Turkey, Britain and Vietnam as being of particular interest, adding that they cover 88% of total goods trade with the U.S.
Trump on Monday also announced that any country buying oil or gas from Venezuela will pay a 25% tariff on any trades made with the United States.
This "secondary tariff" will take effect on April 2, Trump said in a Truth Social post, noting that Venezuela has sent "tens of thousands" of people to the United States who have a "very violent nature."
