Donald Trump has stated that he does not care if car manufacturers increase their prices following the implementation of 25% tariffs on foreign-made vehicles. Analysts have warned that Trump’s charges on businesses importing vehicles may lead to temporary shutdowns in car production in the US, price increases, and strain relations with allies. However, Trump expressed hope that foreign carmakers will raise their prices, indicating that people will then purchase American-made cars. On Wednesday, Trump announced new import taxes of 25% on cars and car parts entering the US. He said that car bosses should congratulate themselves if they produce their cars in the United States, as it will generate a lot of money. He added that if they do not, they will likely have to move to the United States due to the absence of tariffs. Although the 25% import tax on carmakers was briefly implemented and then paused, Trump stated that he does not plan to delay the imposition of the car tariffs further and will only consider negotiations if other countries are willing to give something of great value. In response, Downing Street sources mentioned that the UK would not hesitate to retaliate against US tariffs if needed. The UK is in last-minute negotiations with the White House to get an exemption, arguing for a relatively equal trading relationship. Several major economies, including Germany, France, Canada, and China, have vowed to retaliate against Trump’s tariffs, considering the move a violation of international trade rules.

Source: https://www.bbc.com/news/articles/cgrgj51gl25o