- President Donald Trump ignored fears Its car tariff will lead to raising car makers, saying that he could not care less if they do so. In an interview with NBC News, he added, “I hope to raise their prices, because if they do so, people will buy US -made cars.” But even cars collected in the United States have parts of foreign manufacture.
President Donald Trump said the tariff for new cars was permanent and ignored concerns that it would cause car makers.
in Interview with NBC News On Saturday, he was asked about a conversation Wall Street Journal Reports that he said warned the executives of cars against raising prices while discussing the definitions with them.
Trump replied, “No, I never said it. I couldn't care less if they raised prices, because people will start buying US -made cars.”
He added: “I couldn't care less. I hope to raise their prices, because if they did so, people will buy American -made cars. We have a lot.”
Trump later said if prices rise on foreign cars, consumers will buy US cars.
He also emphasized that the customs tariff exists to remain, saying: “Certainly, it is always permanent. The world has been torn from the United States for forty years and more. All we do is honest, frankly, I am very generous.”
The White House said that foreign auto parts will also strike a 25 % tariff, but vehicles and imported parts under the United States and Mexico-Canada agreement will not witness duties until the government creates a process to impose it.
The United States and foreigners of car manufacturers have a closely integrated supply chains that extend to North America. During the manufacturing process, cars and parts between the United States, Mexico and Canada can cross several times.
Dan Eve, a Wedber Securities analyst, estimated that cars could rise by $ 5,000 to $ 10,000 due to the customs tariff for cars, depending on whether the car is a large brand or a distinct brand.
He wrote in a research note on Friday: “Every auto -industry company in the world will have to raise prices in the form of what is selling in the United States, and it is difficult to even put the supply chain logs of this introductory advertisement around the world.
While the White House has said the intended definitions of activating the American industrial base, Ives are skeptical that cars can be fully reformulated.
This is because even the cars built in America come with foreign -made parts and components that make up 40 % to 50 % of their value.
He added: “An American car with all American parts made in the United States is a fictional story that is not possible to this day.”
This story was originally shown on Fortune.com