Don't Expect The Auto Tariffs Trump Promised To Actually Show Up On April 2

If you're the type of goon who is excited about President Trump's upcoming tariffs for the global automotive industry and the fallout of enacting them, I've got some bad news for you. It's seriously unlikely the April 2 tariffs will actually come to fruition in their current form. If you're everyone else, including consumers, suppliers and the automakers, this is extremely welcome news.

Trump was planning sector-specific duties on automotive, pharmaceutical and semiconductor products starting on April 2. For now, it seems those industries can breathe a sigh of relief as the tariffs are unlikely to actually happen, according to a report from Automotive News. This respite won't last forever, though. Trump is still apparently considering signing an automotive tariff at another time, Bloomberg reports.

Still, the automotive industry is bracing for impact on April 2, which Trump has been calling "Liberation Day" for whatever reason. The administration is expected to enact some sort of reciprocal tariffs on U.S. trade partners because you cannot have the world's economy running too smoothly, can you? To make matters even messier, it's the same day that exemptions for the 25 percent tariffs on goods from Canada and Mexico are set to be lifted, according to Automotive News. As I'm sure you're well aware by this point, most U.S. vehicles and parts imported from those two North American countries are currently exempt. Time will tell if that remains the case at the beginning of April.

Here's more on these so-called reciprocal tariffs, from Bloomberg:

Trump will announce widespread reciprocal tariffs on nations or blocs but is set to exclude some, and — as of now — the administration is not planning separate, sectoral-specific tariffs to be unveiled at the same event, as Trump had once teased, officials said.

Still, Trump is looking for immediate impact with his tariffs, planning announced rates that would take effect right away, one of the officials said. And the measures are likely to further strain ties with allied nations and provoke at least some retaliation, threatening a spiraling escalation. Only countries that don't have tariffs on the US, and with whom the US has a trade surplus, will not be tariffed under the reciprocal plan, an official said.

[...]

"April 2nd is going to be liberation day for America. We've been ripped off by every country in the world, friend and foe," Trump said in the Oval Office Friday. It would bring in "tens of billions," he added, while another aide said recently the tariffs could bring in trillions of dollars over a decade.

Of course, as Bloomberg admits, the situation is extremely fluid as Trump has been known to change his mind at the last second. Who the hell even knows where the world will be on April 2? If I had to guess, it'll be much different than it is right now.

This is just the latest in what seems to be a never-ending parade of tariff updates since the President and the folks around him can't seem to make up their minds about what direction they want to go in. It's sort of the Michael Scott snip-snap-snip-snap method of international trade and relations.

We've also talked about what the fallout of these potential tariffs could be, from the extra costs of buying a car to how increased prices for planes could raise your ticket prices. We've also looked at some predictions for the automotive industry as a whole and what sort of impacts production could end up seeing. It's a real mess.