US president Donald Trump has said he “couldn’t care less” if car prices rise after tariffs on foreign-made vehicles come into force this week.
Starting April 3, all non-US manufactured vehicles will be slapped with a 25% tariff.
Auto parts such as engines, transmission and electrical systems will be subjected to a 25% tariff starting May 3.
Analysts expect foreign vehicle prices to increase by $5,000 to $15,000 per unit, depending on the make and model.
The price of domestically manufactured cars is expected to increase by $3,000 to $8,000 due to higher costs for imported parts.
Trump expressed confidence that higher prices would encourage consumers to buy American-made cars and motivate automakers to relocate production to the US.
“I hope they raise their prices, because if they do, people are gonna buy American-made cars,” Trump said in an interview with NBC News.
Trump’s tariffs policy has sparked criticism from industry leaders and trade partners, with concerns including supply chain disruptions and higher costs for repairs and insurance due to the reliance on international components.
Over the weekend, President Trump was also reported by the Wall Street Journal to be weighing "broader and higher tariffs", including "an across-the-board hike of up to 20%".