Importance Score: 85 / 100 🟢
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 charges on businesses importing vehicles could lead to the temporary shutdown of significant car production in the US, increase prices, and strain relations with allies.
But speaking to NBC News on Saturday, the US president said he hoped foreign carmakers raise prices as it means “people are gonna buy American-made cars. We have plenty”.
On Wednesday, Trump announced new import taxes of 25% on cars and car parts entering the US from overseas, which go into effect 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 went on to say: “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.”
The 25% import tax on carmakers was briefly implemented but then paused at the beginning of March following pleas from major carmakers in North America like Ford, General Motors and Stellantis.
But Trump told NBC he did not plan to delay imposition of the car tariffs any further, 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”.
Trump’s comments come as Downing Street sources said the UK would not hesitate to retaliate against US tariffs if needed.
The UK is in last-minute negotiations with the White House and is trying to get an exemption, arguing that – unlike other countries – the UK has a relatively equal trading relationship with the US. The prime minister Sir Keir Starmer has said he does not want to jump into a trade war.
Several major economies have also vowed to retaliate in response to Trump’s tariffs.
Germany has said it “will not give in” and that Europe must “respond firmly”, France’s president branded the move “a waste of time” and “incoherent”, Canada calling it a “direct attack”, and China accused Washington of violating international trade rules.