President Donald Trump said he doesn’t care if automakers raise prices due to his tariffs on imported cars and parts. In a phone interview with NBC News on Saturday, Trump denied pressuring CEOs to control costs, stating, “I couldn’t care less if they raise prices because people are going to start buying American cars.”
The Wall Street Journal reported that Trump held a call with auto CEOs this month, threatening them with even heftier tariffs if they increase prices because of the import taxes. However, Trump clarified that he hopes his tariffs increase prices, encouraging automakers to build their cars and parts in the United States and persuading customers to buy American.
“The message is: ‘Congratulations, if you make your car in the United States, you’re going to make a lot of money. If you don’t, you’ll probably have to come to the United States because if you make your car there, there is no tariff,'” Trump told NBC News. Automakers have hesitated to relocate to the US due to the significant expense and time required to construct new factories, hire workers, and adjust supply chains.
Trump promotes buying American cars
Trump’s fluctuating policies also give auto CEOs little confidence that he’ll stick to his plans long-term. Trump said his upcoming tariffs, set to go into effect Wednesday, will be permanent but added that he is open to negotiations.
“Absolutely, they’re permanent, sure,” he said of the levees. “The world has been ripping off the United States for the last 40 years and more.”
Auto industry experts have warned that Trump’s tariffs on vehicles and parts will raise the price of all cars sold in the United States by thousands of dollars. Canadian Prime Minister Mark Carney indicated that his nation will retaliate against the United States with its own tariffs if Trump moves forward with his promised levies, potentially escalating an already damaging trade war.
Peter Navarro, White House senior counselor for trade and manufacturing, dismissed concerns about rising consumer prices on Sunday, telling those who may be concerned to “trust in Trump.” He pointed to money raised from auto tariffs that will support tax cuts, promising “the biggest tax cut in American history for the middle class.”
Although Americans won’t necessarily feel the full effects of tariffs immediately, economists broadly agree that the import taxes could raise prices of just about everything, especially given that over 40% of the goods America imported last year came from the nations Trump could target with his reciprocal tariffs.
