Trump holds the line on tariffs despite industry warnings

President Donald Trump continues to stand firm on his position on 25% tariffs on all vehicles and auto parts even amid growing concerns about the measures leading to higher car prices in the U.S.

The details: In an NBC News interview Saturday, the President reaffirmed his stance on the levies as everyone from automakers to car buyers to shareholders scramble to brace for the impact of the tariffs.   

• The President indicated that he, “couldn’t care less” if car companies have to increase the cost of their vehicles due to the levies—with an aide later following up to clarify that Trump was speaking specifically about foreign automakers.

• In the NBC interview, the President also reaffirmed that the tariffs would be permanent—amid some speculation that he might end or modify the measures as part of his trade negotiating tactics.

In an interview with Fox News, when asked by Host Shannon Bream, “What’s the message to consumers?”, White House senior counsel for trade and manufacturing Peter Navarro, replied: "The message is that tariffs are tax cuts, tariffs are jobs, tariffs are national security, tariffs are great for America, tariffs will make America great again." 

Between the lines: A recent poll conducted for Fox News by Beacon Research and Shaw & Company—consisting of 944 registered voters in the U.S.—reveals that Americans are deeply concerned about the impact of the tariffs. 

• 69% of Americans believe Trump’s tariffs will make products more expensive, while 17% believe tariffs will have no impact on prices, and 7% say they would make products less expensive.

• 53% of respondents believe tariffs on imports will harm the U.S. economy, while 28% said they will help, and 11% said it will make no difference.

• 55% of those surveyed favor tariffs on China, while 56% oppose levies on Mexico and 61% oppose tariffs on Canada.  

Bottomline: Tariffs may incentivize U.S. production, but reworking supply chains is slow, expensive, and in many cases, not feasible at scale. In the meantime, automakers reliant on imports will be stuck navigating higher costs with limited room to adapt.

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