Trump announced potential new tariffs on lumber and chips in the near future and plans to implement auto import tariffs shortly. He suggested that some countries may receive exemptions from these tariffs.
Additional tariffs related to business with Venezuela will be imposed in addition to current tariffs. Not all tariffs are expected to be addressed on April 2, following Hyundai’s investment in a steel plant and automobiles.
Tariff Break Considerations
Trump expressed a willingness to consider tariff breaks for countries due to previous charges, promising more details on April 2.
With new trade measures on the way, markets have already started showing movement. The mention of possible exemptions leaves room for speculation. Countries with close ties to the United States may attempt last-minute negotiations, but there is no guarantee of success.
The planned auto import tariffs come at a time when global car manufacturing remains under pressure. Supply chain disruptions in recent years have already made production more expensive, and introducing added costs through trade restrictions may shift corporate strategies further. If exemptions come through, some manufacturers may see relief, but others face higher expenses.
Lumber and chips are industries that have already seen volatility in pricing. New tariffs could introduce another level of instability, depending on how they are structured and which nations receive penalties. If exemptions are applied unevenly, pricing disparities between regions are likely.
Impact Of Venezuela Tariffs
Adding tariffs on business connected to Venezuela introduces another layer of trade restrictions, particularly for firms with links to South America. Some businesses may already have planned for this, while others will need to react quickly.
Hyundai’s recent investment might be influencing discussions, but not all proposed tariffs are expected to be finalised on April 2. If changes are announced in stages, markets could experience waves of price adjustments rather than immediate shifts.
Trump’s comments about potential tariff breaks suggest that prior trade disputes may be factored into decisions. However, without clear conditions for these breaks, businesses remain in a position of uncertainty until further details emerge. Those involved will need to watch for updates, particularly on April 2, when more information is set to be released.
