Trump warns U.S. carmakers not to take advantage of tariffs by hiking prices on consumers [View all]
Source: Fortune
Come April 3, all new vehicles built abroad will be slapped with a 25% import duty, a cost that will likely be passed on to U.S. consumers. Since this affects roughly half the cars sold in the country, companies like General Motors could use the tariff increase as cover to increase their prices on domestically built vehicles as well.
To mitigate the threat of an across-the-board increase in car prices, President Donald Trump held a phone call with management from the top automakers in the country, warning them not to use the tariffs as an excuse to raise prices on domestic cars.
In it, Trump told the executives that the White House would look unfavorably on such a move, leaving some of them rattled and worried they would face punishment if they increased sticker prices, according to the Wall Street Journal report citing people with knowledge of the call.
“The math would tell you that’s going to cost us multibillions of dollars,” one executive told the paper. “So who pays for that?”
Read more: https://fortune.com/2025/03/28/trump-carmakers-not-to-use-tariffs-as-cover-to-hike-prices/
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