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Report: President Trump Warned Automakers Not to Raise Prices
The Wall Street Journal has a new report out suggesting that President Donald Trump warned automakers not to raise prices, presumably so that increased costs by the tariffs aren't passed on to the consumer. In other words, it appears he was asking automakers to take a hit so that tariffs wouldn't be unpopular with consumers.
The Wall Street Journal has a new report out suggesting that President Donald Trump warned automakers not to raise prices, presumably so that increased costs by the tariffs aren't passed on to the consumer.
In other words, it appears he was asking automakers to take a hit so that tariffs wouldn't be unpopular with consumers.
The call with automaker bosses took place earlier this month, and the WSJ reports that automakers were worried they'd face punishment from the federal government if they didn't comply. Exactly what type of punishment wasn't clear.
The Journal further reports that Trump tried to tell the automakers that they should be thankful he ended former President Joe Biden's electric-vehicle "mandate" that was never a mandate -- automakers could've found other ways to comply with more stringent fuel-economy and emissions regulations.
Trump also spent a lot of time on the call touting his plans and suggesting that the automotive industry would benefit from these tariffs.
As we've pointed out multiple times, it's unlikely that automakers can shift production to the U.S. anytime soon. And with the 25 percent tariffs set to take effect next week on April 2, we must once again remind our readers that even vehicles built in the U.S. use components sourced from overseas. So there will likely be price increases once the current crop of vehicles awaiting sale move off of dealer lots. And if new-car prices jump, used-car prices will, too.
The Journal adds that carmakers have been fighting back -- one way they've done so is by supplying dealers with talking points they can use when complaining to their local politicians.
[Image: Babooo0/Shutterstock.com]
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