Trump 'Couldn't Care Less' If Tariffs Make Foreign Cars More Expensive

Yahoo

31-03-2025

Good morning! It's Monday, March 31, 2025, and this is The Morning Shift: Your daily roundup of the top automotive headlines from around the world, all in one place. This is where you'll find the most important stories that are shaping the way Americans drive and get around.
In this morning's edition, we'll hear Donald Trump's reaction to warnings that cars could be about to get much more expensive thanks to his tariffs, and see why Aston Martin is selling a stake in its F1 team. Plus, find out who thinks automotive tariffs could be good for America, and see who's stepping in as Volvo's latest boss.
Read more: F1's Mario Kart-Inspired Saudi Track Proves It Has More Money Than Sense
President Donald Trump confirmed that 25 percent tariffs will hit almost every car imported into America from April 2. The taxes are meant to encourage automakers to bring manufacturing into the U.S., but the reality will probably mean higher prices for many cars and could even spell the death of the cheap car in America.
Trump isn't bothered about all that, though, and told reporters at NBC News that he "couldn't care less" if tariffs make foreign cars more expensive. The "Home Alone 2" actor's comments came just days after auto industry insiders said brands feared repercussions if the tariffs led to price hikes, as NBC Explains:
Asked what his recent message was to motor industry CEOs, and whether he had warned them against raising prices, Trump said, "The message is congratulations, if you make your car in the United States, you're going to make a lot of money. If you don't, you're going to have to probably come to the United States, because if you make your car in the United States, there is no tariff."
Trump even went so far as to say that he hoped automakers hiked their prices on foreign cars as it would mean "people are gonna buy American-made cars." The only problem there is that Trump's tariffs are also going to hit imported car parts as well as entire vehicles, meaning that some made-in-America models are also at risk of getting more expensive.
What's more, some of the top selling cars in America are made outside the U.S., with models like the Toyota Tacoma being assembled in Mexico and Canada building cars like the Honda CR-V.
Away from the tariff talk, Aston Martin is once again struggling and looking for a cash boost. The British brand, which was declared bankrupt seven times in its history, is selling its stake in the Aston Martin F1 team and looking for a funding boost from Canadian Billionaire Lawrence Stroll.
Aston Martin owns a minority stake in the Aston Martin Aramco Formula One team, which it now plans to offload in order to boost its cash reserves. At the same time, the company is seeking a further investment from Stroll's Yew Tree Consortium, which could plow another £52.5 million ($68m) into the car manufacturer to grow its shareholding, reports the Independent. The two deals could bolster the company's finances by as much as £125m ($162m), as Aston Martin's stake in the race team is valued at around £75m ($97m), as the Independent reports:
Mr Stroll, who is also executive chairman of Aston Martin, said: "This proposed investment further underscores my conviction in this extraordinary brand, and commitment to ensuring Aston Martin has the strongest possible platform for creating long-term value while reducing equity dilution via this premium subscription, which should greatly reassure shareholders, as I again increase my long-term ownership in the company.
As a result of the deal, Stroll's investment firm will own 33% of the British car maker and 22.7% of the Aston Martin Aramco Formula One team. In the UK, owning 33% in a company would normally mean that investors have to put forward a cash offer for the entire business, but Aston is hoping to waive these rules, adds the Independent.
As well as the fresh cash, Aston today revealed that it's expecting "modest growth" in sales over the course of 2025. The projection comes amid uncertainty around tariffs and a rollout of new models for the British brand. Just last week, the company unveiled the fastest front-engine convertible in the world.
Sure, cheap cars may be about to die off, vehicles could get more expensive, and the ever-growing trade war could hit all kinds of goods sold across America, but there is at least one positive to come from Trump's new tariffs: jobs may come back to Michigan.
That's the message being spread by United Auto Workers union president Shawn Fain this week, anyway, who believes the tariffs could, in fact, be good for America. The union boss said pressure from tariffs would force brands to immediately bring jobs back to the U.S. as they use "underutilized" plants in across the country, the Detroit Free Press reports:
"Yes, I disagree with Donald Trump on virtually everything, but this (tariffs) is one thing I don't disagree on," Fain said. "We've begged, we've begged Democrats, politicians for years, to do something to get these companies in line. He's the first one, in my lifetime — after 30 years of going backwards with NAFTA and horrible trade laws in this country — who is doing something. I'm not going to sit here now and say that since he's a Republican or because he's Donald Trump, I'm going to say, 'screw you.' That's not how we do things. It's having integrity."
Strong words from a man who once called Trump a "scab" and said the President knew nothing about America's auto industry.
Of course, Fain isn't expecting that, come April 3, companies across the automotive spectrum will open new factories in the U.S., as "that takes time," he added. But, the union boss said there were "a lot of opportunities" across the country already where automakers could expand their domestic production.
Fain cited plants like the Warren Truck facility where Stellantis built pickups up until last year as one example, arguing that the automaker could shift production back "tomorrow" in order to skirt Trump's incoming tariffs.
Swedish automaker Volvo doesn't need the threat of tariffs to bring about a shake up in its company, as the automaker is preparing to bring in a new CEO... sort of.
Volvo announced this morning that CEO Jim Rowan would step down from tomorrow. Instead of promoting from within or bringing in a fresh face, the company will bring back former boss Hakan Samuelsson to lead the automaker on an interim basis, reports Reuters. Samuelsson previously led Volvo from 2012 until 2022, when Rowan stepped into the role. Rowan will serve his last day at the top today (March 31) before making way for the return of Samuelsson for a two-year period while Volvo selects its next leader. Per Reuters:
Volvo Cars board Chair Eric Li said the company was facing fast-moving technological shifts, growing geopolitical challenges, and intensifying competition. "He brings a rare combination of industrial depth, strategic clarity, and proven leadership and Hakan has a broad knowledge of our group," Li said of the veteran CEO who ran Volvo from 2012 to 2022.
Samuelsson re-joins the automaker at a tough time for the auto industry, with Volvo facing tariffs on imports into America, competition from Chinese automakers, and a fine balancing act for the pivot to clean power. The new Volvo CEO acknowledged this in a statement about his appointment, where he added that "the car industry is under pressure from many directions."
I always find it amazing how many global icons were derided when they premiered. Guy Fieri wasn't always the cultural icon he now is, the Sydney Opera House was once loathed by locals, and heck, even "Wet Hot American Summer" was panned when it was first released.
The Eiffel Tower in Paris is another cultural icon that was once panned by critics and locals alike, explains History.com. Back on March 31 1889 when it was first opened, angry locals could at least rest easy in the knowledge that the monumental construction would only be a blight on the Paris skyline for 20 years. Who knows how angry the Parisiens would've been, had they known the tower would still be here more than 135 years later.
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