President Trump downplayed concerns that his forthcoming round of 25% tariffs on all foreign-made vehicles will cause prices on those automobiles to spike, arguing that it will be a boon for American-made autos.
Last week, Trump announced plans to slap 25% tariffs against vehicles made outside the US as part of his “Liberation Day” push on April 2, in which he intends to pursue a raft of “reciprocal” tariffs.
“No, I couldn’t care less, because if the prices on foreign cars go up, they’re going to buy American cars,” Trump told NBC News in a phone interview.
A Trump aide later clarified that the president’s comments brushing aside price hikes were specific to foreign-made vehicles. The auto tariff is set to go fully into effect on April 3.
The average price of a foreign car is expected to soar between $5,000 and $10,000, according to estimates from financial services company Wedbush. The price increases are expected to start hitting consumers by the summer.
Ford Motor and General Motors could shed up to 30% of their earnings, per research from Bernstein, which projected an $110 billion blow to the auto sector, or about $6,700 per vehicle.
Last week, the Wall Street Journal reported that Trump gathered the top CEOs of automakers and warned them against raising their prices last month. During the conversation, Trump riffed about the benefits of the tariffs and refrained from outlining any specific threat against companies that jack up prices.
Following the meeting, several top CEOs were reportedly left nervous about what type of retaliation they might face from the White House if they defy the president’s warning.
But Trump denied ever saying that.
“No, I never said that. I couldn’t care less if they raise prices because people are going to start buying American-made cars,” he told NBC News.
The tariffs will also apply to foreign auto parts even if the vehicles are manufactured in the US, according to White House officials. There will be a special consideration for auto parts subject to the United States-Mexico-Canada Agreement (USMCA), which Trump negotiated during his first term.
“Absolutely, they’re permanent, sure,” he added to the outlet, when questioned about whether the duties will be permanent. “The world has been ripping off the United States for the last 40 years and more. And all we’re doing is being fair, and frankly, I’m being very generous.”
Still, Trump indicated that there may be some wiggle room, particularly on the timeframe for implementing the tariffs “only if people are willing to give us something of great value,” adding that “otherwise, there’s no room for negotiation.”
The president did not provide any specifics about what he would like to see from other countries in order to reconsider the scope of the tariffs.
Earlier this month, Trump slapped 25% tariffs against Canada and Mexico, before later adding temporary one-month carveouts to autos and trade subject to the USMCA. He also imposed a 20% tariff on trade from China.
During his forthcoming “Liberation Day” tariff spree, Trump is expected to take aim at trade with Europe.
Trump also briefly touched upon Signalgate and his ambitions to acquire Greenland during his wide-ranging interview with NBC News.
The 47th president vehemently denied reports that he never considered firing national security adviser Mike Waltz over the Signalgate fiasco in which the Atlantic’s editor-in-chief Jeffry Goldberg was added to a private chat where top officials discussed plans to strike Houthi terrorists in Yemen.
“Nope, I’ve never heard that,” Trump said of the reports. “And nobody else makes that decision but, me and I’ve never heard it, and I don’t fire people because of fake news and because of witch hunts.”
In public, Trump has steadfastly stood by his deputies, including Waltz and Defense Secretary Pete Hegseth.
On Greenland, Trump said he believes “there’s a good possibility” that the US will be able to acquire the Danish territory but did not rule out the use of force.
“I never take military force off the table,” Trump explained. “But I think there’s a good possibility that we could do it without military force.”
“We have an obligation to protect the world. This is world peace, this is international security. And I have that obligation while I’m president.”
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