Yesterday, President Donald Trump's statements about new trade tariffs were largely ignored by dollar buyers. However, risk-asset sellers were also notably absent.

During his speech, Trump announced that he would likely impose tariffs on imported cars, semiconductors, and pharmaceutical products, with rates expected to be around 25%. These tariffs are likely to take effect on April 2. While such a move would escalate the ongoing trade war, the market showed little reaction.

It is worth recalling that Trump had previously announced 25% tariffs on steel and aluminum, set to take effect in March. "I'll probably tell you on April 2, but it's going to be somewhere around 25%," Trump told reporters at his Mar-a-Lago club when asked about the planned auto tariffs.

Regarding tariffs on pharmaceuticals and semiconductors, Trump stated: "The tariffs will be 25% or higher, and they will increase significantly over the year." He explained that he wants to give companies time to adjust before introducing new import taxes. "Let companies come to the United States and open their factories here, and then there won't be any tariffs," Trump added.

Impact on the Auto Industry

Experts warn that new auto tariffs could have widespread consequences for the industry. Last year, around 8 million cars and light trucks were imported into the US, accounting for nearly half of all car sales.

Major European automakers, including Volkswagen AG, as well as Asian manufacturers like Hyundai Motor Co., will likely be among the hardest hit.

Trump did not specify whether these measures would target specific countries or apply to all imported vehicles. It is also unclear whether cars produced under free trade agreements with Canada and Mexico would be exempt.

For Mexico and South Korea, where auto exports to the US make up 2.4% and 1.8% of GDP, respectively, Trump's new tariffs pose a serious economic challenge.

Impact on the Semiconductor Sector

In the semiconductor sector, Malaysia and Singapore are expected to be among the hardest-hit nations. Malaysia, the sixth-largest exporter of semiconductors, recorded $136 billion in semiconductor exports in 2024.

Representatives from Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. declined to comment on the new tariffs.

Potential Retaliatory Measures

Recently, US trading partners have vowed to respond swiftly to Trump's tariffs, warning that they will target politically sensitive US-made goods.

A top European Union trade official is expected to travel to Washington this week for last-ditch talks aimed at avoiding the April tariffs. However, Trump has made it clear that no country will be able to negotiate its way out of the tariffs if he considers trade relations to be imbalanced.

EUR/USD Technical Outlook

Right now, EUR/USD buyers need to push the price above 1.0475. This will open the way for a test of 1.0510. Breaking above this level could lead to an advance toward 1.0554, though achieving this without support from major players will be challenging. The long-term target remains 1.0590.

If the pair declines, serious buying interest is expected around 1.0430. If buyers fail to emerge at that level, a drop to 1.0400 or even 1.0370 could be on the horizon.

GBP/USD Technical Outlook

For GBP/USD buyers, the key level to break is 1.2630. Successfully overcoming this resistance could lead to a test of 1.2665, though further gains beyond this point would be difficult. The final target stands at 1.2690.

If the pair falls, bears will attempt to regain control at 1.2590. A break below this range would seriously weaken bullish positions, pushing GBP/USD toward 1.2550, with a potential move down to 1.2515.