Investing.com -- President Donald Trump is preparing to announce new auto tariffs as early as Wednesday, escalating trade tensions ahead of a broader tariff rollout next week, according to a report from Bloomberg, citing people familiar with the matter.
The details of the tariffs, including their scope and possible exemptions, remain unclear, said Bloomberg.
The news caused midday volatility in large U.S. auto stocks, including GM, Ford, Tesla (NASDAQ:TSLA), and Stellantis (NYSE:STLA).
Bloomberg said it is also uncertain whether the tariffs will take effect immediately or be implemented over time.
However, the move is expected to impact major automotive brands in Japan, Germany, and South Korea, key U.S. trading partners.
Trump previously indicated that the levies would encourage growth in the domestic auto sector and push companies to shift more production to the U.S. He has also said the levies help spur growth in the domestic auto sector and force companies to move more production to the US.
The timing of the announcement is not yet final and could still change, Bloomberg reported, citing sources.
One source reportedly noted that Trump wants to introduce the tariffs before his planned April 2 unveiling of sweeping reciprocal tariffs on other nations.
The move carries risks, as North American automakers rely on deeply integrated supply chains across the U.S., Mexico, and Canada.
Any tariffs could disrupt operations and raise costs for manufacturers. The tariffs would mark a further escalation of Trump’s ongoing trade battles.
The Detroit Free Press reported that Ford Chair Bill Ford and General Motors (NYSE:GM) CEO Mary Barra will meet administration officials to discuss the impact of tariffs on their companies.