American car buyers might see price hikes soon. Donald Trump, the US President, says he doesn’t care if car manufacturers raise prices. This is after the US started taxing cars made outside the country at 25%.
Trump told NBC News that higher prices would actually help American car makers. “I don’t care, I hope they do,” he said. When asked if this would worry car manufacturers, Trump replied, “That’s a good message.”
The US started taxing cars and parts made outside the country on March 27. This includes engines, gearboxes, and electronic parts. The tax rate is 25%.
Some car parts are exempt from the tax for now. These are parts that meet the requirements of the US-Mexico-Canada trade deal. However, the US Commerce Secretary and Customs and Border Protection will decide how to implement the tax.
Trump says the tax will be permanent. He believes it will boost American manufacturing and help the US car industry.
Despite this, stocks of major US car manufacturers fell sharply after the tax was introduced. Experts warn that higher car prices will affect American consumers.
Source: cna