President Donald Trump is slapping a new 25 percent tariff on all foreign-made cars as he tries to spur business in the United States.
‘What we’re gonna be doing is a 25 percent tariffs on all cars that are not made in the United States,’ Trump told reporters in the Oval Office.
‘Business is coming back to the United States,’ he declared.
Trump said that the tariff that will go into effect on April 2 will impact both ‘friends and foes’ of the U.S. and is considered ‘modest.’
The president is signing an executive order to help the auto industry ‘flourish like never before.’
‘It will lead to tremendous growth in the automobile industry,’ the president added.
Trump downplayed fears that Americans will see higher prices due to the new tariff, saying ‘we’re going to have the best economy ever.’
Experts have estimated that the price of cars will rise by thousands of dollars due to Trump’s action.
According to the Anderson Economic Group the cost of a car that’s built in the U.S. – but requires foreign parts – could also cost more due to the tariffs.
‘Business is coming back to the United States,’ he declared
The group estimated Americans could see a rise between $3,500 to $12,000 for each vehicle.
Trump brushed off the market reaction to the move, with the S&P 500 index down about 1 percent and the NASDAQ down 2 percent at closing as his tariff announcement loomed.
‘I didn’t see that,’ Trump said. ‘I want to see the jobs. I want to see – that’ll all take care of itself,’ Trump said.
Trump elected to have the tariffs not to take effect until April 2 – Commerce Secretary Howard Lutnick yelled out that they would actually be levied on April 3. That leaves room for potential negotiation, although Trump said his decision was final.
‘This is permanent,’ Trump said.
He got asked directly whether the new tariffs would be good for Tesla – billionaire Elon Musk is a key White House advisor to Trump.
But Trump indicated that Musk stayed out of the decision. He called Teslsa a ‘fantastic’ car. ‘I think they may, it could be a net neutral, or they may be good. He has a big plant in Texas,’ Trump said.
Trump offered bullish numbers on how much the tariffs, which are collected at ports of entry and slapped on imports, could bring to the treasury. He said ‘we could probably – anywhere from $600 billion to a trillion cold be taken in over the relatively short term period.’
For decades major auto makers have established supply chains across North America, making it exceedingly difficult to determine what is a ‘domestic’ vehicle versus an ‘imported’ one.
The Chevy Blazer is assembled in Mexico and could take a hit, as could the Honda HR-V. Many lower-priced cars are built in Mexico, while parts for an array of U.S. models that are assembled in Detroit, Ohio, and Indiana come south across the Canadian border.
Earlier this month, the Big Three car makers Stellantis, Ford and General Motors got Trump to hold off on autos being part of a 25 percent tariff on goods coming from Canada and Mexico coming into the U.S.
Shares for GM were off 3 percent Wednesday. Ford’s ticked up, while Stallantis was down 3.6 percent.
Canadian Prime Minister Mark Carney called the tariffs an attack on Canadian workers.
The status of any exemptions was unclear.
‘If they have factories here, they’re thrilled. If you don’t have factories here, they’re going to have to get going and build them,’ Trump said.
The new auto tariff comes after Trump in February slapped a 25 percent tariff on steel and aluminum imports.
President Donald Trump is slapping a new 25% tariff on all foreign made cars
Trump has thrown his support behind American-made Teslas run by his ‘first buddy’ Elon Musk.
He even purchased a red Telsa Model S earlier this month after they were displayed on the White House lawn.
He turned the South Lawn of the White House into a Tesla showroom with five different models – including the infamous cybertruck – on display on the driveway.
The model S Trump bought has a starting price of $76,880.
He and Musk sat in the car. Trump started the engine and Musk showed him the features. Alas, the president didn’t take it for a test drive, saying the Secret Service would let him.
He added he would pay by personal check. ‘I don’t want a discount,’ he said.
Musk said he would accept a personal check from the president.
‘His credit’s good,’ Musk noted. He had his young son X with him on the South Lawn.
Trump was making good on a his promise to purchase one of the pricey electric cars to support Musk, who is leading his Department of Government Efficiency efforts to cut back the size and scope of the federal government.
President Donald Trump, alongside Tesla CEO Elon Musk, speaks next to a Tesla vehicle on the South Drive of the White House with Musk’s son X
The red Model S Tesla that President Trump bought – above with Tesla CEO Elon Musk – has 37 recall notices against it
The president blasted ‘left-wing billionaires’ for being behind the attacks on Tesla lots as he defended Musk.
The president also argued those wealthy liberals were behind his state and federal indictments.
He discussed the matter in an interview on Newsmax on Tuesday evening.
Newsmax’s Greg Kelly brought up the ‘Tesla violence,’ asking the president: ‘Have you heard anything about billionaires on the left, whether it’s Soros or somebody else? Have you heard anything about planning, coordination, funding for these attacks?’
Trump has thrown his support behind American-made Teslas run by his ‘first buddy’ Elon Musk
‘I believe that is part of it. Yeah,’ Trump said. ‘ There are some of them that were involved with my trials that were, I think, probably involved with that also. And you know, Elon has done a very good job.’