President Trump on Saturday denied reports alleging he urged auto CEOs not to raise costs amid tariffs on foreign-made cars, instead doubling down on his decision to increase levies in an effort to create an American manufacturing boom.
“I couldn’t care less if they raise prices, because people are going to start buying American-made cars,” Trump said in an interview with NBC News.
“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.”
Earlier this week, Trump announced 25 percent tariffs on foreign made cars and auto parts set to take effect on April 2.
Germany, Japan and South Korea will likely feel the brunt of the effects as companies deal with repercussions from the United States’ stiff policy on imports, which the president said are permanent.
“Absolutely, they’re permanent, sure. The world has been ripping off the United States for the last 40 years and more,” Trump told NBC.
“And all we’re doing is being fair, and frankly, I’m being very generous.”
If the tariffs are fully passed onto consumers, the average auto price on an imported vehicle could jump by $12,500, a sum that could feed into overall inflation, The Associated Press reported.
Trump did note that countries with resources of “great value” might be able to negotiate lower prices.
Although some lawmakers have pushed back on the measure, Trump remains confident that the move will create long-term gains for the U.S.
“For the most part, I think it’s going to lead cars to be made in one location,” Trump said Wednesday in the Oval Office.
Hours later the stock market dipped. However, foreign companies including Apple, Honda and Hyundai have each slated major investments for their American plants in the wake of the Trump administration’s announcement.
