Trump says he may raise auto tariffs in near future

The Mainichi

19 hours ago

WASHINGTON (Kyodo) -- U.S. President Donald Trump said Thursday he may raise tariffs on auto imports in the near future in a bid to attract more investment in American manufacturing.
"I might go up with that tariff in the not-too-distant future. The higher you go, the more likely it is they build a plant here," Trump said at an event at the White House.
Trump asserted that all manufacturing in the United States is "surging," thanks to the 25 percent tariffs on cars and auto parts his administration imposed earlier this year.
It remains unclear how serious Trump is about pursuing the plan, which he abruptly floated during a ceremony for him to sign a congressional resolution blocking a California rule that sought to phase out the sale of new gas-powered vehicles by 2035.
Automakers, both foreign and American alike, are already reeling from Trump's hefty tariffs.
In early April, an additional 25 percent tariff on all automobiles made outside the United States took effect, which raised the tax rate on imported passenger vehicles to 27.5 percent, dealing a blow to Japanese, German, South Korean and other foreign carmakers as well as their American rivals.
A month later, the Trump administration imposed a new 25 percent tariff on key auto parts such as engines and transmissions.
Trump's latest remarks came a day before the arrival of Japan's chief tariff negotiator in Washington for the fourth straight week, continuing what Tokyo calls "intensive" talks before a planned meeting between its prime minister and the U.S. president.
During the ongoing negotiations, Japan has consistently called for a full removal of Trump's new, much higher tariffs, particularly those targeting the automotive sector, the country's mainstay industry that accounts for one-third of its total exports to the United States.
Both foreign and American automakers have complained about Trump's steep tariffs, citing the complexity of their supply chains.
In addition to voicing concern that the measures could sharply raise car prices, they have argued that it is not a quick or easy process to relocate production to the United States, as their supply chains involve countless suppliers and rolling out new models requires years of planning and huge investments in technology.