The Biden administration is preparing to implement a set of reciprocal tariffs on April 2 but is expected to exclude sector-specific levies that were previously under consideration, according to reports from Bloomberg News and The Wall Street Journal. The decision marks a shift in trade policy that could have significant implications for industries like automotive, semiconductors, and pharmaceuticals.

Policy Shift: Sector-Specific Tariffs Dropped

Initially, the administration had proposed tariffs targeting key sectors, with former discussions focusing on a 25% duty on imported automobiles and additional levies on semiconductors and pharmaceutical products. However, following pressure from major U.S. automakers, tech companies, and drug manufacturers, the government appears to have reconsidered.

According to The Wall Street Journal, White House officials have decided to exclude these industry-specific tariffs from the upcoming trade measures. The report cites an administration official who confirmed that while broad reciprocal tariffs will still be announced, sector-specific duties will not be part of the initial rollout.

Why the Change? Industry Lobbying & Economic Concerns

The shift in policy comes after intense lobbying from some of the country’s largest corporations. The three biggest U.S. automakers, along with major semiconductor manufacturers and pharmaceutical firms, reportedly urged the administration to reconsider the move, arguing that such tariffs could increase production costs and hurt competitiveness in global markets.

Additionally, the decision aligns with concerns from Treasury Secretary Scott Bessent, who previously suggested that imposing sector-specific tariffs could trigger retaliatory actions from key trading partners such as the European Union and China, potentially disrupting supply chains.

April 2: Broad Reciprocal Tariffs Still on Track

Despite removing industry-specific duties from the plan, the White House still intends to move forward with new reciprocal tariff rates on April 2. Officials have emphasized that the measures will be part of a broader strategy to ensure fair trade practices and respond to tariffs imposed on U.S. exports by other nations.

However, trade experts believe the situation remains fluid. While Bloomberg News initially reported that all sector-specific tariffs were off the table, some analysts suggest that certain industries could still see targeted measures later in the year, depending on ongoing negotiations with international partners.

What’s Next? Possible Delays & Future Trade Adjustments

While the administration maintains that April 2 is the target date for implementing the new tariff policy, some uncertainty remains. Treasury Secretary Bessent’s recent remarks suggested a potential delay, though White House officials insist that the timeline is still in place.

In the coming weeks, markets and industry leaders will be closely watching for further policy updates and possible last-minute adjustments to the tariff plan. With U.S.-China trade tensions still a major factor and ongoing negotiations with European partners, it’s possible that additional trade measures could be introduced later in 2025.

For now, businesses in affected industries may find some relief in the exclusion of sector-specific tariffs, but broader trade tensions and policy shifts remain key factors to monitor.

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