In a move that might just make some sectors breathe a sigh of relief, the U.S. government is poised to sidestep imposing sector-specific tariffs on April 2, according to reports from Bloomberg News and The Wall Street Journal.
This decision comes amidst a backdrop of trade tensions and strategic tariff maneuvers. Back in February, President Donald Trump hinted at a hefty 25% tariff on auto imports, alongside similar duties on semiconductors and pharmaceuticals. However, after some persuasive lobbying from the top three U.S. automakers, the administration seems to have hit the brakes on the auto tariffs, at least temporarily.
Auto and semiconductors safe?
While the sector-specific tariffs are off the table for now, the administration is still gearing up to roll out reciprocal tariff measures on April 2. As always, the situation remains as fluid as a Wall Street ticker tape. Bloomberg's sources suggest that the exclusion of sector-specific tariffs is a done deal, while The Wall Street Journal echoes this sentiment, citing an administration official.
Industries like automotive and semiconductors are potentially dodging the bullet. Meanwhile, Europe has hit the pause button on its retaliatory measures, like the bourbon tariffs, pushing them to mid-April. This temporary truce has nudged market indicators back into the green.
Yet, the White House remains tight-lipped, declining to comment outside of regular business hours. However, President Trump remains determined to see new reciprocal tariff rates take effect on April 2. This comes even after Treasury Secretary Scott Bessent hinted at a possible delay.
However, in a video with Bloomberg, Trump appeared opened to talks with China on the tariff topic. As the clock ticks down to April 2, businesses and investors alike will be watching closely.
https://www.marketscreener.com/news/latest/U-S-Sidesteps-Sector-Specific-Levies-For-Now-49411875/
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