Warning, the White House has been occupied by a communist as President! Stable genius Donald Dumb warned the American car makers in a call earlier this month
to not raise car prices because of his tariffs! Typical communist behaviour, how dare he!
The White House would look unfavorably on such a move, Trump told, leaving some car executives rattled and worried they would face punishment if they increases prices.
Instead, so Trump, they should be grateful for his elimination of what he called Biden's electric-vehicle mandate. I wonder what White House Tech Support Elon Musk has to say about that.
And then Trump made a lengthy pitch about how the car makers would actually benefit from tariffs, that he was bringing back manufacturing to the US and is better for their industries than previous presidents.
“You’re going to see prices going down, but going to go down specifically because they’re going to buy what we’re doing, incentivizing companies to—and even countries—companies to come into America,” he said at the event.
Detroit’s automakers and industry suppliers in particular have made clear there is little they can do but raise prices in the face of tariffs. Bringing more factories back to the U. S.—a tenet of Trump’s tariff strategy—can take years for car companies to make happen.
“Tariffs, at any level, cannot be offset or absorbed,” Ray Scott, chief executive of parts supplier Lear, wrote in an email Tuesday to employees that was viewed by
The Wall Street Journal. “A holistic, industrywide approach will be necessary to mitigate the impact.”
For now, dealers have stockpiled a two- to three-month supply of new cars, meaning the impact of the tariffs might not start to be felt until May. At that point, vehicle prices could rise 11% to 12% to offset the tariffs, Morgan Stanley analysts said Thursday in a note.
An executive at one of the automakers said they were baffled by the desire to both impose tariffs—but also tell car companies they couldn’t raise prices.
“The math would tell you, that’s going to cost us multibillions of dollars,” the executive said. “So who pays for that?”
Automakers have signaled to their retailers the enormous pressure they were under. Stellantis earlier this month said the 25% tariffs on goods from Canada and Mexico favor Asian and European rivals and sent U.S. dealers an email with talking points to share with lawmakers.
“We encourage you to contact your federal and state representatives to share your opinion on a matter that threatens to disrupt our business,” read the email, which was viewed by the Journal.