Trump Expected to Impose 25% Tariff on Automobiles; Pharmaceuticals and Semiconductors May Also Be Affected [SMM Tin Morning News]

SMM Tin Morning Brief on February 19, 2025: US President Trump stated on Tuesday that auto tariffs would be around 25%, and he would announce more details on April 2. Trump told reporters, "I might tell you on April 2, but it will be around 25%." Last Friday, Trump mentioned that the tariffs on automobiles could be imposed as early as April 2, with his cabinet members set to submit a report to him on April 1 outlining options for a series of import tariffs. Trump has long pointed out what he describes as unfair treatment of US auto exports in overseas markets. For instance, the EU imposes a 10% tariff on car imports, four times the US passenger car tariff rate of 2.5%. However, the US imposes a 25% tariff on high-profit imported pickup trucks. Trump also stated on Tuesday that a 25% tariff might be imposed on pharmaceuticals and semiconductor chips in April, with at least some of these tariffs expected to increase within the year. In the futures market, during yesterday's night session, SHFE tin prices opened slightly higher but pulled back, adjusting to around 261,700 yuan/mt before the close. The overall open interest in SHFE tin contracts showed relatively small changes. Meanwhile, the spot market remained relatively quiet, with most traders transacting around 10 mt, and the majority of orders being post-pricing orders. Downstream enterprises maintained only a small amount of just-in-time procurement. If SHFE tin prices continue to stay above 260,000 yuan/mt, the spot market is likely to remain subdued.