Donald Trump has stated that he “couldn’t care less” if carmakers raise prices once his 25% tariffs on foreign-made vehicles take effect.
Some analysts have warned that these import duties could temporarily halt some US car production, leading to higher prices for consumers. However, Trump told NBC News on Saturday that he welcomed the idea of foreign carmakers raising prices, believing it would encourage consumers to buy American-made cars instead, stating, “We have plenty.”
On Wednesday, Trump announced new 25% tariffs on cars and car parts entering the US, effective April 2. The tariffs on vehicle imports are set to begin on April 3, with taxes on parts to follow in May or later.
When asked what message he had for car executives, Trump said, “The message is congratulations. If you make your car in the United States, you’re going to make a lot of money.”
He added, “If you don’t, you’re going to have to probably come to the United States, because if you make your car here, there is no tariff.”
Recent polling by CBS News shows that 72% of consumers believe prices will rise in the short term due to the tariffs. More than half of respondents also said the Trump administration isn’t focusing enough on reducing costs for Americans.
Trump’s senior trade advisor, Peter Navarro, urged people to trust the president, claiming that previous tariffs on China led to “prosperity and price stability.” He also suggested that foreign countries would bear most of the cost, stating, “The US is the biggest market in the world.”
Shawn Fain, leader of the United Auto Workers union, criticized Trump’s labor and immigration policies on CBS’s Face the Nation. However, he acknowledged that tariffs are a “necessary tool” to bring manufacturing back to the US. “There is plenty of opportunity,” Fain said, adding that companies have expressed intentions to return production to the US if the tariffs are implemented.
Trump briefly paused the 25% import tax on carmakers from Canada and Mexico in early March after requests from major North American manufacturers like Ford, General Motors, and Stellantis. However, he told NBC that he does not plan to delay the tariffs any longer, saying he would consider negotiating only if countries are willing to offer “something of great value.”
Trump also hinted at imposing secondary tariffs of 25-50% on Russian oil if he feels that Vladimir Putin is stalling peace talks over Ukraine. He stated, “If Russia and I are unable to make a deal on stopping the bloodshed in Ukraine, and if I think it was Russia’s fault — which it might not be — but if I think it was Russia’s fault, I am going to put secondary tariffs on oil, on all oil coming out of Russia.”
Trump mentioned that Putin knows he is angry but emphasized that their relationship remains strong, saying, “The anger dissipates quickly… if he does the right thing.” He also indicated plans to speak to Putin again later this week.
Analysts warn that Trump’s upcoming tariffs could further strain relations with key US trading partners. Sources from Downing Street have indicated that the UK is prepared to retaliate if needed. The UK is in last-minute talks with the White House, hoping for an exemption, as they argue their trade relationship with the US is relatively balanced. Prime Minister Sir Keir Starmer has expressed reluctance to enter a trade war.
Other major economies have also vowed retaliation, with Germany declaring it “will not give in” and France’s president calling the move “a waste of time” and “incoherent.” Canada has called the tariffs a “direct attack,” and China has accused the US of violating international trade rules.