Donald Trump
It was reported earlier that Trump planned to announce auto tariffs as soon as Wednesday, and U.S. stocks fell in response. The S&P 500 fell 0.8%, extending its quarterly losses toward its worst quarterly performance since 2023. The Dow Jones Industrial Average was slightly lower. A Bloomberg index of large-cap stocks fell 2.3%. The Russell 2000 index fell 0.7%.
Trump hinted on Monday that auto tariffs could be introduced before April 2, the date his sweeping "reciprocal tariffs" plan is scheduled to begin.
"We'll probably make an announcement soon in the next few days, and then when April 2 comes, reciprocal tariffs will be implemented," he told a Cabinet meeting. Trump has said such tariffs would help boost growth in the domestic auto industry and force companies to move more production to the United States.
The level and scope of the auto tariffs is unclear, including whether any exemptions will be covered or considered and which ones will be exempted. It is also unclear whether the tariffs will take effect immediately, whether they will only target finished vehicles or whether they will also hit auto parts.