Trump Unfazed by Potential Auto Price Hikes Amid New Tariffs: ‘I Couldn’t Care Less’ – Honda Motor Co (NYSE:HMC)

President Donald Trump remains undeterred in the face of potential price hikes in the auto industry in response to his new tariffs on foreign-made vehicles.

What Happened: On Saturday, Trump refuted claims that he had advised auto industry leaders against price increases in response to the new tariffs. Instead, he reaffirmed his decision to raise tariffs in an effort to boost American manufacturing.

“I couldn’t care less if they raise prices, because people are going to start buying American-made cars,” Trump stated in an interview with NBC News. He further expressed his anticipation for price increases, which he believes will steer consumers towards American-made vehicles.

Earlier this week, Trump declared a 25% tariff on foreign-made cars and auto parts, set to take effect from April 2. Countries such as Germany, Japan, and South Korea are predicted to be most affected by these tariffs.

Also Read: Over 7 Million Vehicles Could Face The Brunt Of Trump’s Auto Tariffs: ‘This Could Drive…The Auto industry Into Recession’

Trump confirmed these import policies are here to stay. “The world has been ripping off the United States for the last 40 years and more,” he declared. “And all we’re doing is being fair, and frankly, I’m being very generous.”

According to reports, if the tariffs are fully passed onto consumers, the average price of an imported vehicle could spike by $12,500. This could potentially fuel overall inflation. However, Trump pointed out that countries with “great value” resources might have room to negotiate lower prices.

Despite some resistance from lawmakers, Trump is convinced that this move will bring long-term benefits for the U.S. This announcement has already triggered significant investments in American plants by foreign companies, including Apple Inc. AAPL, Honda Motor Co., Ltd. HMC, and Hyundai Motor Company (KRX: 005380).

Why It Matters: This decision by the President could reshape the auto industry, potentially leading to a shift in consumer behavior towards American-made vehicles.

The move has already sparked investments from foreign companies in American manufacturing plants, indicating a possible boost to the domestic auto industry.

However, the potential price hike and its impact on inflation will be a key factor to watch in the coming months.