U.S. President Donald Trump said he “couldn't care less” if automakers raise the prices of vehicles due to tariffs set to be imposed on vehicles imported into the U.S. starting April 3.
In an interview with NBC News on March 29, Trump was asked if he had warned foreign automaker executives not to raise consumer prices in response to the 25-percent tariffs.
“No, I never said that,” Trump replied. “I couldn't care less if they raise prices,” adding that he hoped they would, as it would make people buy ‘American’ cars. In 2024, around half of the 16 million vehicles sold in the U.S. were imports.
A complex reality
The tariffs will affect trade worth $240 billion USD. As of May 3, they will also apply to parts essential to the assembly of vehicles, such as engines, transmissions and electrical systems, with the possibility of even more components being affected.
Parts that comply with the rules of the U.S.-Canada-Mexico Free Trade Agreement will initially be spared the tariffs.
Analysts at JPMorgan Chase estimate that vehicle prices will rise by an average of 11 percent, which means thousands of dollars. Since the announcement of the tariff threats, we've seen various scenarios being discussed, with anticipated increases ranging from $6,000 to $18,000 USD for higher-end models.
We'll see how the industry reacts over the coming weeks.