President Donald Trump is expected to announce new measures imposing tariffs on automobiles Wednesday afternoon.
It was not immediately clear what the scope of the new duties would be. The Wall Street Journal reported Wednesday that they may only end up affecting “finished” vehicles while leaving out auto parts. NBC News could not immediately verify that report.
Shares in the U.S.’s largest automakers initially fell on news of the announcement, which came directly from White House Press Secretary Karoline Leavitt, but rallied after the Journal published its report.
Mexico remains the largest source of U.S. auto imports, accounting for approximately 14% of all cars purchased in the U.S., followed by Japan, South Korea, the European Union and Canada.
The announcement comes a week ahead of Trump’s planned “Liberation Day” on April 2, when he has promised to roll out a bevy of new tariffs against many of America’s largest trading partners, including long-time allies, that will affect a broad range of goods. Trump had hinted in recent days that a separate statement on auto tariffs could come ahead of next week.
Previously, Trump indicated he was receptive to pleas from U.S. automakers that tariffs would harm their businesses. He gave them a one-month reprieve from duties on Canada and Mexico that ultimately evolved into indefinitely waiving the levies for all items covered by the U.S.-Mexico-Canada free-trade agreement.
Trump’s on-again, off-again announcements have roiled markets in recent weeks while ratcheting up uncertainty in the economy. That has led to declining business and consumer confidence.
While some economic indicators have suggested the U.S. economy remains in solid shape, the U.S. Commerce Department reported Tuesday that orders for business equipment placed with U.S. factories unexpectedly declined 0.3% last month, the first drop since October.
Meanwhile, S&P Global reported this week that U.S. manufacturing activity slipped back into contraction territory thanks to a rise in materials costs related to tariffs, while the outlook for the services sector deteriorated.
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