Donald Trump has said he “couldn’t care less” if carmakers raise prices after his 25% tariffs on foreign-made vehicles comes into effect.
Some analysts have warned that Trump’s import charges could lead to the temporary shutdown of some US car production, with increased prices passed onto consumers.
But the US president told NBC News on Saturday that he hoped foreign carmakers will raise prices as it meant “people are gonna buy American-made cars – we have plenty”.
On Wednesday, Trump announced new 25% tariffs on cars and car parts entering the US to begin on 2 April. Charges on businesses importing vehicles are expected on 3 April, and taxes on parts are set to start in May or later.
When asked about what his message was to car bosses, he said: “The message is congratulations. If you make your car in the United States, you’re going to make a lot of money.”
He continued: “If you don’t, you’re going to have to probably come to the United States, because if you make your car in the United States, there is no tariff.”
Recent polling by BBC’s US partner CBS News suggests that consumers are worried the tariffs will raise prices, with 72% indicating that they believe costs will increase in the short-term. More than half of respondents said the Trump administration is not focusing enough on lowering costs for Americans.
Asked about this sentiment on Sunday, Trump’s senior counsellor for trade and manufacturing Peter Navarro asked people to put their trust in the US president.
“Trust in Trump,” Navarro told Fox News, adding that previous tariffs on China by the US have led to “prosperity and price stability”.
“The reason why we will not see inflation is because foreigners are going to eat most of it, they have to,” he said, adding that the US “is the biggest market in the world.”
Shawn Fain, the leader of union United Auto Workers, criticised Trump for his labour and immigration policies on CBS Face the Nation – but he said tariffs were a necessary “tool in the toolbox” to return manufacturing to the US.
“There is plenty of opportunity. And I’ve had companies tell us, point blank, that they’re going to have to bring product back here if those tariffs are implemented.”
The 25% import tax on carmakers was briefly implemented but then paused at the beginning of March, following pleas from major North American manufacturers like Ford, General Motors and Stellantis.
But Trump told NBC that he did not plan to delay the tariffs on cars any longer, saying he would consider negotiating “only if people are willing to give us something of great value – because countries have things of great value, otherwise, there’s no room for negotiation”.
