ABOARD AIR FORCE ONE:
US President Donald Trump stated on Friday that he is open to negotiating agreements with countries looking to bypass upcoming US tariffs. However, he emphasized that any such deals would only be considered after his administration officially implements reciprocal tariffs on April 2.
Speaking to reporters aboard Air Force One, Trump also mentioned plans to introduce tariffs targeting the pharmaceutical industry but did not disclose specific details regarding their timing or rates.
He noted that several nations, including the United Kingdom, had reached out to the US in hopes of securing exemptions from the impending trade measures.
“They want to negotiate, and if we can gain something in return, I’m open to making deals,” Trump said. “But these discussions will likely take place after April 2โit’s a process.”
Meanwhile, major automakers, including General Motors, Toyota, and Volkswagen, expressed concern over Trump’s proposed 25% tariffs on imported vehicles, warning that such measures could negatively impact US consumers and the industry at large.
John Bozzella, President of the Alliance for Automotive Innovation, which represents leading manufacturers like Ford, Hyundai, Honda, Stellantis, BMW, and Mercedes-Benz, cautioned that additional tariffs could drive up costs for American buyers, reduce vehicle sales, and hinder US auto exports before any new domestic manufacturing or job growth materializes.
“We fully support the goal of increasing US auto production, but the reality is that supply chains and manufacturing infrastructures are highly complex and cannot be relocated overnight,” Bozzella stated.
The White House did not provide immediate comments on the concerns raised. However, Ford CEO Jim Farley informed employees in an internal email that the tariffs could have significant repercussions for the entire automotive sector, including manufacturers, suppliers, dealerships, and customers.
Despite the fact that over 80% of Ford’s US sales come from vehicles assembled domestically, Farley acknowledged that the company would still feel the impact of the tariffs, which could be substantial.
Uncertainty remains over whether the administration will extend the 25% tariffs imposed earlier on North American-assembled vehicles not covered under free trade agreements. Additionally, it is unclear whether the White House will introduce further tariff hikes on the European Union and other trade partners next week.
On Wednesday, the White House estimated that the new tariffs on autos and auto parts could generate approximately $100 billion in revenue within a year.
Automakers may attempt to offset the financial burden of tariffs by distributing costs across both domestically produced and imported models, reducing features, or even discontinuing entry-level modelsโmany of which are imported and could become less viable due to higher prices.
