U.S. President Donald Trump on Thursday signaled a possible hike in auto tariffs, saying it could push automakers to invest more in the U.S. “I might go up with that tariff in the not too distant future,” Trump said. “The higher you go, the more likely it is they build a plant here.” Automakers, including the Detroit Three, have urged the White House to ease the current 25% tariffs, especially after a deal cutting tariffs on British car imports excluded Canada and Mexico.
Trump pointed to recent investment pledges, such as GM’s $4 billion plan to upgrade three U.S. plants and shift SUV production from Mexico, and Hyundai’s $21 billion U.S. investment, including a steel plant. “They wouldn’t have invested 10 cents if we didn’t have tariffs,” Trump said, crediting the policy for a resurgence in American steel.
Meanwhile, Mexico said cars exported to the U.S. will face an average 15% tariff due to U.S. content-based reductions.