On Saturday, President Donald Trump denied reports that alleged he had urged top executives from car companies to keep their prices low amid threats of tariffs on foreign-made cars.
Trump shared his defense in an interview with NBC News while also doubling down and saying he didn’t care what happened to prices of foreign-made cars.
“I couldn’t care less if they raise prices because people are going to start buying American-made cars,” Trump said. “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.”
Trump announced last week that he would impose 25% tariffs on foreign-made cars and auto parts starting on April 2.
Among the countries expected to feel the brunt of these tariffs are Germany, Japan, and South Korea. While he has walked back other tariffs in recent weeks, delaying tariffs he once said would be implemented on the first day of his presidency, Trump says these tariffs will be 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.”
Still, he did say that countries that have resources of “great value” may be able to negotiate the tariffs.
The Associated Press reports that the tariffs could directly impact consumers, as prices for vehicles could jump by $12,500, which could then feed into overall inflation.
From the Oval Office on Wednesday, Trump said that he is looking to push manufacturers to build their cars in the U.S.
“For the most part, I think it’s going to lead cars to be made in one location,” Trump said.
Some appear to be doing just that, as South Korean automaker Hyundai announced on Monday that it will be building a $5.8 billion steel plant in Louisiana.
“Hyundai will be producing steel in America and making its cars in America, and as a result, they’ll not have to pay any tariffs,” Trump said at a press conference with Hyundai executive chairman Euisun Chung.
Chung told reporters the move would create 1,300 jobs and serve “as the foundation for a more self-reliant and secure automotive supply chain in the U.S.”