Trump reciprocal tariffs, auto tariffs planned for April; aluminum, steel duties set for March

On Friday afternoon, President Trump oversaw the swearing-in of his new top tariff official, Commerce Secretary Howard Lutnick, and confirmed a plan to consider digital service taxes as tariffs.

Trump’s comments capped off a week of trade threats as signs emerged that consumers are growing more cautious about the economy and inflation.

Yahoo Finance’s Ben Werschkul writes:

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Bloomberg reports:

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Reuters reports that the Trump administration’s swift actions to cut federal spending and impose a range of tariffs appear to be weighing on US businesses, according to a new S&P Global survey released Friday.

US business activity tumbled to a 17-month low, the latest survey showing consumers and businesses rattled by President Trump’s policies. According to Chris Williamson, chief business economist at S&P Global Market Intelligence, companies cited federal spending cuts, tariffs, and geopolitical uncertainty as primary concerns.

Manufacturing activity did expand for a second month after it contracted in late 2024. This could be linked to factories pulling orders ahead to get in front of tariffs, the S&P report said.

Consumer sentiment data, also released Friday, showed Americans grew more pessimistic about the economy and lifted their inflation expectations.

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South Korean officials sought to receive an exemption from President Donald Trump’s wide-ranging reciprocal tariffs in an official visit to Washington.

Reuters reports:

Walmart projected a cautious outlook for the upcoming year, signaling it expects slower sales growth due to tariffs and broader economic uncertainty.

While the retail giant hasn’t raised prices yet, CFO John David Rainey told Yahoo Finance that it’s not off the table, especially for items produced in China subject to a new 10% tariff.

Yahoo Finance’s Brooke DiPalma reports:

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As the auto industry navigates new tariffs on cars and steel that President Trump wants to introduce in the coming months, Mercedes-Benz CEO Ola Källenius said he’s still committed to doing business in the US.

Yahoo Finance’s Brian Sozzi reports:

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General Motors (GM) CFO Paul Jacobson said Wednesday that the automaker would consider moving its plant locations if US tariffs became permanent.

President Trump announced Tuesday that he plans to impose a 25% tariff on autos starting April 2, a day after the administration is expected to release reports on reciprocal tariffs on other countries. The president also announced 25% tariffs on Mexico and Canada that have been delayed until March.

Reuters reports:

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Tesla CEO and “first buddy” Elon Musk hasn’t taken up President Trump’s tariff campaign — at least not publicly on social media. Yahoo Finance’s Ben Werschkul writes:

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President Donald Trump continues on his contentious path of tariff talk. Following on from auto tariffs in April, Trump has announced plans for significant duties on pharmaceutical and semiconductor imports.

Reuters reports:

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Mexican tequila makers are concerned President Trump’s 25% blanket tariff on Mexico and Canada, expected to go into effect in March, could damage their businesses, Reuters reports. Tequila has grown in popularity in recent years and has become the US’s second-best-selling spirit.

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Yahoo Finance’s Dani Romero reports that homebuilders are feeling less optimistic about the housing market as they navigate tariff policy uncertainty and elevated mortgage rates:

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President Trump’s tariff actions are already weighing on how C-suites think about capital expenditures, or their long-term spending plans for building property, plants, and equipment.

Yahoo Finance’s Brian Sozzi writes:

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Yahoo Finance Executive Editor Brian Sozzi writes in Sunday’s Morning Brief that the pending reciprocal tariffs “should terrify bulls in Apple, Amazon,” et al:

Trump signed the plan for reciprocal tariffs on Feb. 13 with a built-in delay to allow for possible negotiations with affected countries. Japan has reportedly already sought to be exempted from the tariffs plan.

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Bloomberg reports that Japan is seeking to be “exempted” from President Trump’s planned reciprocal tariffs:

As Yahoo Finance’s Ben Werschkul previously reported, Trump signed a plan for the reciprocal tariffs on Feb. 13, but with a delay that would allow for potential one-on-one negotiations with affected countries.

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President Trump stated Friday that he plans to add new tariffs on auto imports in early April. The president did not specify what level the tariffs would be set at or if any nations would be targeted.

Bloomberg reports:

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On the Capitol Gains podcast this week, Yahoo Finance Anchor Madison Mills, Washington Correspondent Ben Werschkul, and Senior Columnist Rick Newman discuss a key question at the center of President Trump’s trade agenda: How far will he go on tariffs?

“Wall Street has been discounting Trump’s tariffs plans from before he took office,” Newman observed. “And the gamble, which is still why you are still seeing stocks are pretty buoyant, is Trump is threatening all this stuff, but he’s not actually going to do most of it. This is just a means to an end.”

The president also appears to be “playing a game of chicken,” Newman added, as tariffs could raise prices on already inflation-weary consumers.

While the 10% tariffs on Chinese imports are “not huge,” they’re “not nothing either,” Newman said, and Americans may take notice if the rest of Trump’s proposed tariffs go into effect.

For the full discussion on the latest tariff and tax developments, watch the full episode below:

India announced Thursday it has eased its tariffs on bourbon whiskey, benefiting brands such as Jim Beam maker Suntory (STBFY).

Reuters reported that the country slashed duties on the spirit to 100% from 150% previously. Imports of other liquor products to India will continue to be taxed at 150%.

The move comes after President Trump met with Indian Prime Minister Narendra Modi this week and announced his plan to implement reciprocal tariffs. The president has been critical of India’s tariff levels, calling them “very unfair,” but the two leaders appeared to agree on a path forward for trade negotiations.

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On Thursday, President Trump signed off on a reciprocal tariff plan. Under this plan, his administration will review trading relations with each nation and begin implementing like-for-like tariffs in April.

Some policy analysts and economic watchers saw the move as a potential pivot by the Trump administration away from a universal 10% to 20% tariff on all nations.

As Yahoo Finance’s Ben Werschkul reports:

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Japan has begun communication with the United States regarding President Donald Trump’s recent directive to implement reciprocal tariffs on countries that impose tariffs on US goods, including Japan, the European Union, and India.

The Japanese government is reviewing the proposed measures and will respond accordingly based on their potential impact.

Reuters reports: