WASHINGTON D.C, USA – President Donald Trump has defended his decision to impose a 25% tariff on foreign-made cars, saying he “couldn’t care less” if carmakers raise prices as a result.
Trump’s comments came after he announced the new tariffs would go into effect on April 2, 2025, a move that some analysts fear could disrupt U.S. car production and lead to higher prices for consumers.
While some experts have warned that the import taxes could cause a temporary shutdown of certain U.S. car production lines, with increased prices being passed onto buyers, Trump seemed unfazed.
“I hope they raise prices,” he said in an interview with NBC News. “It means people are gonna buy American-made cars – we have plenty.”
The president’s latest tariffs will apply to both cars and car parts entering the U.S. from foreign countries.
Starting April 2,2025, businesses importing vehicles will be subject to these charges, with taxes on parts set to take effect in May.
When asked about his message to car manufacturers, Trump responded, “The message is congratulations. If you make your car in the United States, you’re going to make a lot of money.”
Trump emphasized that U.S. manufacturers would avoid the tariffs by producing vehicles domestically, and he made it clear that he was open to negotiations only if countries offered “something of great value.”
“If you don’t, you’re going to have to probably come to the United States,” Trump said.
Peter Navarro, Trump’s senior counsellor for trade and manufacturing, also defended the move.
Speaking to Fox News, Navarro argued that previous tariffs, including those on China, had led to “prosperity and price stability.”
“The reason why we will not see inflation is because foreigners are going to eat most of it, they have to,” Navarro added.
“We are the biggest market in the world.”
Despite the administration’s bullish stance, the move has sparked criticism from both sides of the political aisle.
Shawn Fain, president of the United Auto Workers union, acknowledged that tariffs were a “tool in the toolbox” to bring manufacturing back to the U.S., but he criticized Trump for his other policies on labor and immigration.
The tariffs on cars from Canada and Mexico were briefly paused in March following pressure from major North American manufacturers like Ford, General Motors, and Stellantis.
However, Trump has now made it clear he has no plans to delay the tariffs further, saying he would only consider negotiations if countries offered significant concessions.
In addition to the car tariffs, Trump also discussed the possibility of imposing secondary tariffs on Russian oil, threatening a 25-50% tax on Russian oil imports if peace talks on Ukraine stall.
“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… I am going to put secondary tariffs on oil,” Trump said.
The international response to Trump’s trade policies has been largely negative.
The UK has warned it may retaliate against U.S. tariffs, especially as it seeks an exemption for its relatively equal trade relationship with the U.S.
Meanwhile, Germany and France have vowed to respond firmly, with Germany calling the U.S. move a “direct attack” and France’s president dismissing it as “a waste of time.”
Canada and China have also expressed strong opposition, with Canada labelling the tariffs a “direct attack” and China accusing the U.S. of breaching international trade agreements.
As relations with the U.S.’s main trading partners continue to sour, analysts warn that Trump’s tariffs could escalate global trade tensions.
