Written by Cláudio Afonso | LinkedIn | X
Donald Trump denied a report that he warned top US automakers against raising prices in response to planned tariffs on imported vehicles and parts, pushing back on claims that the former president pressured the industry ahead of a major policy announcement.
“No, I never said that. 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 on Saturday.
“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,” he added.
His comments came after The Wall Street Journal reported last week that Trump had urged executives from major US carmakers not to increase vehicle prices while preparing to roll out a 25% tariff on imported cars and parts.
Citing people familiar with the matter, the WSJ said Trump warned that “the White House would look unfavorably on such a move,” leaving some executives “rattled and worried they would face punishment if they increased prices.”
Following the NBC interview, a Trump aide clarified that the former president was referring specifically to the prices of foreign vehicles, according to the network.
Asked directly by NBC whether he had warned automotive CEOs not to raise prices, Trump responded: “The message is congratulations, if you make your car in the United States, you’re going to make a lot of money. If you don’t, you’re going to have to probably come to the United States, because if you make your car in the United States, there is no tariff.”
Trump met with General Motors Co. Chief Executive Officer Mary Barra and Ford Motor Co. CEO Jim Farley earlier this month to discuss the tariffs.
GM currently builds about 52% of the vehicles it sells in the US at domestic plants, with 30% sourced from Canada and Mexico, and 18% from other regions. Ford manufactures roughly 77% of its US-sold vehicles domestically, 21% in Canada and Mexico, and 2% elsewhere.
Trump has said the tariffs will be permanent claiming “the world has been ripping off the United States for the last 40 years and more. And all we’re doing is being fair, and frankly, I’m being very generous.”
He said last week that his administration would implement the tariff on April 2, with enforcement beginning the following day.
The WSJ also reported that Trump told executives they “should be grateful for his elimination of what he called former President Joe Biden’s electric-vehicle mandate,” and argued the tariffs would help bring auto manufacturing back to the US.
Automakers have begun reacting to the expected policy shift. Ferrari NV said Thursday it would raise prices on some models by up to 10% to offset the new tariffs.
JPMorgan Chase & Co. analyst Ryan Brinkman said last week the proposed 25% levy could erase General Motors’ global profit and slash Ford’s by about 75%. He estimated a $14 billion hit to GM and a $6 billion impact for Ford.
The European Union is considering retaliation. The Financial Times reported the EU is weighing tariffs on US services exports — including technology — in response to the proposed duties on vehicles.
