US President Donald Trump has dismissed concerns about potential price hikes for new vehicles in North America, declaring he “couldn’t care less” if carmakers raise prices in response to his proposed 25 per cent tariff on all foreign-made vehicles, which is set to come into effect this week (April 2).
In an interview with NBC News aired over the weekend, Trump doubled down on his protectionist trade stance, vowing to penalise automakers which produce vehicles outside the US, while rewarding those who manufacture domestically.
“The message is congratulations, if you make your car in the United States, you’re going to make a lot of money. 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,” Trump said.
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When asked whether he had instructed car companies not to increase prices, as previously reported by The Wall Street Journal, Trump denied any such message. “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 reinforced that stance throughout the interview: “I couldn’t care less. I hope they raise their prices, because if they do, people are gonna buy American-made cars. We have plenty.”
An aide later clarified to NBC News that Trump’s remarks referred specifically to foreign vehicle prices.
As it stands, the 25 per cent tariff will apply not only to foreign-made vehicles but also to imported auto parts, even if they’re used in US-assembled vehicles. However, under the US-Mexico-Canada Agreement (USMCA), companies compliant with trade rules will temporarily avoid the duties until a formal process is in place. USMCA-compliant parts will remain tariff-free for now.
Trump made it clear the tariff policy is not a temporary measure. “Absolutely, they’re permanent, sure. 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.”
Global response to the measures has been swift, with leaders like Japanese Prime Minister Shigeru Ishiba and Canadian Prime Minister Mark Carney calling the tariffs “unjustified” and threatening retalitory responses, although the trade deficit with both those countries remains in America’s favour.
