President Donald Trump said he doesn’t care if automakers raise prices due to his tariffs, encouraging them to do so. In a phone interview with NBC News, Trump denied pressuring auto CEOs to control costs but expressed hope that higher prices will encourage Americans to buy American-made cars.
Trump’s 25% tariffs on imported cars and parts are set to go into effect Thursday, which could lead to supply-and-demand imbalance and higher prices for vehicles. Automakers may cut back production or raise prices themselves due to the additional cost of tariffs.
However, Trump believes his tariffs will encourage automakers to shift production back to the US, resulting in higher profits. The president said he hopes foreign car prices rise, as it will persuade Americans to buy American-made cars. Foreign and domestic automakers assemble many of their vehicles and parts in the US, but they also make them in Mexico and Canada.
To address concerns about rising prices, White House senior counselor Peter Navarro told “Fox News Sunday” that tariffs are tax cuts, jobs, national security, and great for Americans. He assured consumers to trust Trump and promised a big tax cut for the middle class.
Despite Navarro’s assurances, economists agree that import taxes could raise prices of just about everything. Over 40% of goods imported last year came from nations targeted by Trump’s reciprocal tariffs. The massive tariffs match foreign countries’ import taxes dollar-for-dollar on various products, set to go into effect Wednesday and are considered permanent.
Canadian Prime Minister Mark Carney warned the US that his nation will retaliate with tariffs if Trump presses forward with the levies.
Source: https://edition.cnn.com/2025/03/29/business/trump-auto-prices-tariffs/index.html