On Thursday, U.S. President Donald Trump suggested a potential increase in auto tariffs, indicating that such a move could incentivize automakers to increase their investments within the United States. "I might raise that tariff in the near future," Trump remarked. "The higher the tariff, the greater the likelihood they'll establish manufacturing plants here." Major automakers, including the renowned Detroit Three, have been advocating for the White House to reduce the existing 25% tariffs, particularly since a recent agreement lowering tariffs on British car imports did not include Canada and Mexico.
Trump highlighted recent investment commitments, such as General Motors' $4 billion initiative to enhance three U.S. facilities and relocate SUV production from Mexico, as well as Hyundai's $21 billion investment in the U.S., which includes the construction of a steel plant. "These companies wouldn't have invested a single dime without the existence of tariffs," Trump asserted, attributing the policy to the revival of American steel. Meanwhile, Mexico announced that its cars exported to the United States will be subject to an average 15% tariff, as a consequence of the U.S. implementing content-based tariff reductions.
