• President Trump plans imminent tariffs on imported automobiles, with pharmaceutical tariffs to follow later.
  • Auto industry braces for price hikes of $3,500-$10,000 per vehicle under proposed 25% duties.
  • Move comes amid broader trade strategy targeting trade imbalances and immigration concerns.

Auto tariffs take priority

President Trump will announce new tariffs on imported cars "shortly," with pharmaceutical levies planned for "some point" afterward, according to people familiar with the administration's trade agenda. The auto tariffs could take effect as soon as next month, though timing remains fluid as officials weigh potential exemptions.

The proposed 25% duty on foreign vehicles would likely increase car prices by $3,500 to $10,000 per unit, according to industry estimates. Automakers have been scrambling to adjust supply chains since March, when the White House granted a temporary exemption from earlier tariffs that took effect on March 4, 2025.

Pharma waits in the wings

Pharmaceutical companies are monitoring developments closely, with concerns mounting about potential disruptions to complex global supply chains. Industry executives who spoke on condition of anonymity said new tariffs could force difficult choices about research investments and production locations.

The administration has signaled it may scale back some planned tariffs, potentially sparing certain sectors. A senior Commerce Department official noted "ongoing discussions" about whether to exclude automobiles, pharmaceuticals and semiconductors from the April 2 announcement, though auto tariffs appear likely to proceed.

Trade strategy unfolds

These measures represent the latest salvo in Trump's aggressive trade policy, which has increasingly used tariffs as leverage in negotiations. The administration views automotive and pharmaceutical imports as particularly ripe targets in its efforts to address trade deficits and combat illegal drug trafficking.

Commerce Secretary Wilbur Ross recently told reporters the administration remains "committed to leveling the playing field" for American manufacturers. When reached for comment, a White House spokesperson declined to specify exact timing for either set of tariffs, saying only that "all tools remain on the table."

Correction: An earlier version of this article misstated the potential price impact of auto tariffs. The correct range is $3,500 to $10,000 per vehicle.