US President Trump makes another retractor in his erratic customs policy and promotes car manufacturers in customs exceptions. For medication, however, he announces tariffs in the not “too distant future”.
According to the announcement of customs exceptions to electronics products such as smartphones and laptops from the weekend, US President Donald Trump has now also rowed back in auto-tariffs. The Republican, on Monday evening, at least temporarily applicable exceptions from his far -reaching tariffs.
25 percent tariffs exposed to auto imports
The car companies need a little more time to switch their supply chains to part production in the USA, said Trump. That’s why he is currently checking how to help some manufacturers. Trump did not provide any information on what the specific measures look like and how long it could take.
Trump had imposed tariffs of 25 percent on vehicles imported to the USA – in early May tariffs should also be followed by components. At the same time, some vehicles from Mexico and Canada are already excluded as part of a North American trade agreement.
Auto shares asked
The investors on the stock exchanges are relieved by the planned customs exceptions. On Monday, the shares of the US autories General Motors and Ford clearly increased on Wall Street after Trump’s announcement.
In Japan, too, shares of car manufacturers are particularly in demand in the morning. The Papers from VW, BMW and Mercedes-Benz, listed in the Dax, also started the day on the Frankfurt Stock Exchange.
“The damage is prepared”
Even if the stock exchanges react positively to the planned customs exceptions: the uncertainty among the companies concerned should remain high. Because nobody knows when Trump will end these “temporary” exceptions. Planning security looks different.
“Obviously there is a learning curve at the US President if he continues to squander when it comes to tariffs,” emphasizes Commerzbank analyst Antje Praefcke. “But the damage is done, trust is destroyed.”
Customs on Medical devices should come soon
While Trump ranged the auto tariffs on Monday, he at the same time made it clear that tariffs come to pharmaceutical products “in the not too distant future”. “We no longer produce our own medication. The pharmaceutical companies are sitting in Ireland and in many other places in China,” Trump said in the White House at a meeting with El Salvador’s President Nayib Bukele. Everything he has to do to shift production to the USA, be it to impose import duties.
“The higher the customs, the faster they come,” said Trump with a view to the pharmaceutical companies. He compared the planned tariffs with the punitive measures of 25 percent to the import of cars, steel and aluminum. It was unclear whether he referred to the amount of punitive measures. He has a schedule, said the Republican. “We do this because we want to make our own medication.”
Trump wants Medication get into the USA
Pharmaceutical products have so far been excluded from the far-reaching new US tariffs. But Trump had already made it clear that he also wanted to bring medication manufacturers with tariffs to build production facilities in the USA.
US trade minister Howard Lutnick made it clear at the weekend that special tariffs will soon be released by products such as smartphones, laptops and other important electronic goods. He also spoke of pharmaceutical products.
