President Trump to announce new auto tariffs today

President Donald Trump will announce new tariffs on auto imports today at 4 p.m. ET inside the Oval Office, White House Press Secretary Karoline Leavitt said Wednesday morning. The announcement will arrive just days before the official rollout of Trump’s larger trade plan, the “reciprocal tariff” system, scheduled for April 2.

Speaking Monday at a Cabinet meeting, Trump confirmed the auto tariffs would drop “fairly soon over the next few days, probably,” and made clear they would land before April 2, which he has repeatedly described as “reciprocal tariffs day.” The White House told reporters that today’s announcement is part of a broader trade overhaul targeting countries that apply import duties to U.S. goods.

Trump pulls back on tough tariff language

Trump has spent years teasing an aggressive approach to trade and said his team has been preparing a set of retaliatory tariffs that would hit nations taxing U.S. products. The plan, originally pitched as a country-by-country response, would match foreign duties and also respond to what Trump called “disfavored trade policies,” including value-added taxes (VATs), wage suppression, and currency manipulation.

April 2 has been hyped repeatedly by Trump. He’s labeled it both “liberation day” and “the big one”—a reference to his long-standing promise to take direct action against what he claims are unfair trade practices. The reciprocal tariff plan was described as an attempt to level the playing field. But over the past several days, Trump and his team have taken a softer tone.

Last Friday, Trump told reporters there “will be flexibility” in how the tariffs are applied. Then, during a Tuesday night interview with Newsmax, he stated, “I’ll probably be more lenient than reciprocal, because if I was reciprocal, that would be very tough for people.” He followed up with, “I know there are some exceptions, and it’s an ongoing discussion, but not too many, not too many exceptions.”

Treasury Secretary Scott Bessent weighed in last week, confirming that some countries could avoid penalties if they pre-negotiate with the U.S. government before the April 2 deadline. The White House then told CNBC’s Eamon Javers that non-tariff barriers like VATs and currency manipulation will no longer factor into how tariff rates are calculated. That change marks a significant retreat from Trump’s earlier rhetoric, which promised a much stricter approach.

VATs are consumption taxes collected at each stage of production and are common in many countries. Trump’s original plan involved retaliating against those as well, but that part of the policy has been dropped.

The back-and-forth has created uncertainty among businesses and investors. Trump’s habit of making policy changes at the last minute—often through off-the-cuff remarks or late-night interviews—has made it hard for companies to prepare. Many are still unclear about which countries will face tariffs and how the exemptions will be handled.

In recent weeks, the financial markets have responded with visible anxiety. On Tuesday, the Conference Board reported that its index measuring consumer expectations on jobs, business, and income fell to a 12-year low. The drop comes amid increased fears of a global trade fight. The report shows that both consumers and businesses are growing concerned about the economic outlook.

Stocks haven’t fared any better. The S&P 500 has fallen 3% over the past month. That dip pushed the index into correction territory, meaning it briefly dropped more than 10% below its most recent high, which was recorded in February. Analysts blame the tariff drama for fueling the decline.

As today’s press conference approaches, the Trump administration has said little about the actual numbers behind the new auto tariffs. The White House has not confirmed which countries will be affected, how steep the duties will be, or whether any trading partners have already been granted exemptions. Leavitt told reporters only that “details will be provided during the president’s remarks.”

Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More