Greg Sargent: Trump Accidentally Wrecks His Own Tariff Spin in Leaked Call Stunner

[Dennis Donovan]

Greg Sargent - (archived: https://archive.ph/ZsrFy ) Trump Accidentally Wrecks His Own Tariff Spin in Leaked Call Stunner

In a call with auto CEOs, the president warned them against raising prices. Isn’t that an admission that his argument for tariffs is bogus?

Greg Sargent
March 29, 2025

Faced with expert opinion predicting that his tariffs will jack up prices for American consumers, President Trump has carefully considered a wealth of evidence surrounding this complex matter, and after extensive consultation with stakeholders on all sides, has concluded that his tariffs are a bad idea, after all.

Just kidding! Actually, Trump has decided to take another course entirely: Stung by that expert opinion, he’s now corruptly wielding executive power to warn the relevant companies that they’d better not raise prices after his tariffs go into effect—or else.

The Wall Street Journal reports that in a private call with CEOs of the nation’s leading auto companies this month, the president warned them against hiking prices after his tariffs hit. The White House will look unfavorably on them if they do, he darkly intimated, leaving them worried about retribution.

This is getting attention as another abuse of power, akin to his extortion of law firms. But it’s notable for a different reason: It wrecks the spin Trump has offered on his tariffs on many different levels, and it highlights a glaring absurdity about his economic agenda that continues to be overlooked. While Trump’s stated goal of tariffs is to rebuild the nation’s industrial base, he’s gunning to reverse policies by his predecessor in a way that would kill large numbers of manufacturing jobs, including in the auto industry, simply because they would facilitate the transition to a green future.

This week, Trump announced that he’s imposing a 25 percent tariff on all imported vehicles and parts. Experts say this will raise auto prices by many thousands of dollars: tariffs on imported vehicles are a tax on their consumption, and tariffs on parts will make it more expensive to manufacture vehicles here.

/snip

[tanyev]

1. The stupidest moron that ever did moron.

[travelingthrulife]

2. He will promise these CEO dimwits that the tax break they get will make up the

difference. As though a CEO would ever absorb the cost of these tariffs.

[ProfessorGAC]

3. He'll Be Completely Ignore

The net margins in the auto industry are about 7%.
If costs go up by 25% of the 55% tied up in parts, overall cost to produce goes up 13.75%
7 - 13.75 = -6.25%.
The automakers simply cannot hold the line on prices without going broke.
It took me 30 seconds to find these numbers, another minute to confirm those margins by looking at Toyota's & GM's income statements. Under 2 minutes to figure out that this ask (threat) is impossible.
Another folly coming from the gang that can't get out of their own way.

[no_hypocrisy]

4. This guy is a graduate of Wharton?

1. If the auto guys DON'T "jack up their prices", they take a haircut on profits.
2. Which means they have angry shareholders who will sue them and the corporations.
3. Which also means the loss digs into those juicy tax cuts Trump promised.
4. And no guarantee the average consumer will have enough money to purchase new vehicles, let alone for a down payment.

[sinkingfeeling]

5. So, the companies will be forced to eat the costs. How long before

they go belly up?