President Donald Trump said he "couldn't care less" if foreign automakers increase their prices in response to his proposed tariffs on all vehicles and their parts not made in the United States.
In an exclusive phone interview with NBC News, the president defended the use of tariffs because he believes it will push consumers to "start buying American-made cars."
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"If you make your car in the United States, you're going to make a lot of money," President Trump told NBC. "If you don't, you're going to have to probably come to the United States because if you make your car in the United States there is no tariff."
The president's remarks come days after he signed an executive order placing a 25% tariff on all cars not made in the U.S. The order is slated to go into effect on April 2.
Administration officials say the tariffs could account for $100 billion in new revenue for the U.S. President Trump said some manufacturers will expand existing plants or move parts divisions to the U.S. to avoid the tariffs.
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The new tariffs, however, may make operations more expensive even for U.S.-based auto manufacturing, which depends on international supply chains for vehicles and their parts. A large portion of auto manufacturing touches Canada and Mexico, for example, and accounts for more than half of U.S. auto imports and more than $300 billion in annual trade from the U.S.
Some of the largest car manufacturers — including Ford, Stellantis and General Motors — manufacture vehicles in Mexico. Canada and Mexico combined also buy more than half of the vehicles exported from the U.S.
