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President Donald Trump raises concerns His car taxes will raise car manufacturing companies and say he cannot pay less attention if so. “I hope they will raise their prices because if they do that, people will buy US cars,” he said in an interview with NBC News. But even vehicles collected in the United States have foreign-made parts.
President Donald Trump has said he has raised his new car and his shoulders and raised concerns that will raise car manufacturing companies.
In an interview with NBC News on Saturday, he was asked about the recent ones. Wall Street Journal A report that he has warned automotive executives not to raise prices while discussing taxes with them.
“No, I’ve never said that. I couldn’t pay less attention if they raise prices because people start buying US cars,” Trump replied.
“I couldn’t pay less attention. I hope they will raise their prices because if they do that, people will buy US cars. We have a lot,” he said.
Trump then said that if the price of foreign cars rises, users will buy US cars.
He also confirmed that the taxes are here to stay and said: “We are permanent and sure.
The White House says foreign-made parts will be paid by 25 percent taxes, but vehicles and parts imported under the US-Mexico-Canada Agreement will not see the tasks until the government sets a process to impose them.
While more than half of the value of imported cars came from Mexico and Canada last year, more than $70 billion in areas where the USMCA has not covered, including Asia and Europe, according to the International Trade Association.
Car manufacturers in the United States and foreigners have united closely, including North America. During the production process, cars and pieces can cut several times between the United States, Mexico and Canada.
Even Trump’s ally Elon Musk has warned that Tesla, which produces all cars in the United States, will be affected by car taxes.
Wedbush Securitis analyst Dan Ives estimates that the price of cars could rise by $5,000 to $10,0
“Every car manufacturer in the world must raise prices in some ways sold in the United States, and the logistics of a series of supply of tax declarations worldwide, it is difficult to even put our arms at this moment,” he wrote in a research memorandum.
While the White House says taxes are aimed at reviving the US industrial base, Ives suspects that car production could be completely transported.
This is because even the cars made in the United States are equipped with foreign-made parts and components that account for 40% to 50% of their value.
“An American car that all the pieces made in the United States is a fictional story, even today,” he said.
This story was initially mentioned in Fortune.com