Panelists Ben Levisohn, Jack Hough and Megan Leonhardt break down three topics investors should be aware of on ‘Barron’s Roundtable.’
President Donald Trump said Saturday that he “couldn’t care less” if automakers raise prices due to the impact of his upcoming tariffs on foreign-made cars, arguing that the move will lead to more purchases of cars produced in the U.S.
“I couldn’t care less if they raise prices, because people are going to start buying American-made cars,” Trump told NBC News. “I hope they raise their prices, because if they do, people are gonna buy American-made cars. We have plenty.”
The president also said he did not warn auto companies against raising costs in response to the tariffs – pushing back on reports that he made the threats as a way to control the price of cars.
TRUMP’S 25% AUTO IMPORT TARIFFS: THESE ARE THE MOST IMPACTED MANUFACTURERS
President Donald Trump said he “couldn’t care less” if automakers raise prices due to tariffs. (Win McNamee/Getty Images / Getty Images)
This comes after Trump announced 25% tariffs on foreign-made cars and auto parts, sparking concerns about potential price hikes that would impact consumers. The tariffs are part of the president’s efforts to promote American manufacturing, as he has argued that tariffs would lead foreign auto producers to move production into the U.S. and boost American jobs.
The tariffs, which are slated to go into effect on Wednesday, would be permanent, the president said.
“Absolutely, they’re permanent, sure. The world has been ripping off the United States for the last 40 years and more,” Trump said.
The tariffs on foreign-made cars would be permanent, Trump said. (Oriental Image via Reuters Connect / Reuters Photos)
“And all we’re doing is being fair, and frankly, I’m being very generous,” he added.
If the taxes are fully passed onto consumers, the average auto price on an imported vehicle could spike by $12,500, which could impact overall inflation, according to The Associated Press.
Trump said he would only consider negotiating with countries to lower the tariffs “if people are willing to give us something of great value.”
TRUMP’S AUTO TARIFFS COULD BE BOON FOR RENTAL CAR COMPANIES
The tariffs are slated to go into effect on Wednesday. (REUTERS/Yves Herman/File Photo / Reuters Photos)
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Despite skepticism from economists about the tariffs benefiting America and criticisms from foreign leaders, Trump maintains that the U.S. will enjoy long-term growth as a result.
“For the most part, I think it’s going to lead cars to be made in one location,” Trump told reporters on Wednesday.
Reuters contributed to this report.
