Donald Trump said he “don’t care much” if automakers raise prices after a 25% tariff on foreign-made vehicles comes into effect.
Some analysts warn that Trump’s accusations against vehicle importers could lead to major temporary closures of car production in the United States, rising prices and ties with allies.
But the US president, speaking to NBC News on Saturday, said he hopes foreign automakers will raise prices, meaning “people are going to buy American-made cars. We have a lot.”
On Wednesday, Trump announced a new 25% import tax on cars and auto parts that enter the US from overseas, which will take effect on April 2. Car import companies are expected to charge on April 3rd, with taxes on parts expected to begin after May.
When asked what his message was to the car boss, he said: “Congratulations to the message. If you make your car in the US, you’ll make a lot of money.”
He went on to say: “If you don’t, you probably have to come to the US because if you build your car in the US, there will be no customs duties.”
A 25% import tax on automakers was temporarily in place, but was suspended in early March after pleas from major North American automakers such as Ford, General Motors and Stellantis.
But Trump told NBC he said he would not be delaying the imposition of tariffs on cars, saying he would consider negotiating only if people want to give us something of great value.
Trump’s comments come as Downing Street sources say the UK will not hesitate to retaliate against US tariffs if necessary.
The UK is in last-minute negotiations with the White House and unlike other countries, the UK is seeking exemptions, claiming it has a relatively equal business relationship with the US. Prime Minister Kiel says he doesn’t want to jump into a trade war.
Several major economies have also pledged to retaliate in response to Trump’s tariffs.
Germany has said it “not succumbed”, Europe has “have to respond firmly”, the French president branded the move as “a waste of time” and “inconsistent”, Canada has called it a “direct attack”, and China has accused Washington of violating international trade rules.
