President Trump said Saturday he doesn’t care if foreign automakers raise prices because of his 25 percent tariffs on imported cars and some parts.
After the Wall Street Journal reported Thursday that Trump threatened auto CEOs with even higher tariffs if they raise prices because of the import taxes, NBC News’ Kristen Welker asked the president whether he asked automakers not to raise prices.
“No, I never said that,” Trump told Welker. “I couldn’t care less if they raise prices, because people are going to start buying American cars.”
“I couldn’t care less,” the president added. “I hope they raise their prices, because if they do, people are gonna buy American-made cars. We have plenty.”
Trump, instead, said his message to auto CEOs is to shift production back to the U.S.
“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 told Welker.
The current U.S. tariff on foreign cars is 2.5 percent, and about half of all cars sold in the U.S. are imported from other countries. The tariffs stand to raise prices for American consumers and spark a potential trade war, though the Trump administration has downplayed that possibility.
Trump also said his reciprocal tariffs, which are set to start this week and will match foreign countries’ import taxes dollar-for-dollar, will be permanent.
“Absolutely, they’re permanent, sure,” he said. “The world has been ripping off the United States for the last 40 years and more.”
However, he also told Welker he would be willing to negotiate the tariffs “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 has already instituted several tariffs ahead of April 2, when the rest of his planned tariffs will begin. Currently, the U.S. is levying 20 percent tariffs on China, 25 percent tariffs on aluminum and steel imports, and 25 percent tariffs on Canadian and Mexican goods that do not fall under the U.S.–Mexico–Canada Agreement. Canadian and Mexican products covered by the North American trade pact — including auto imports belonging to General Motors, Ford, and Stellantis — were given a one-month reprieve from the tariffs previously set to start in early March.