President Donald Trump on Tuesday claimed the auto industry is “excited” over his decision to impose tariffs on imports from three of the country’s biggest trading partners, including Canada and Mexico.
In a speech before a joint session of Congress, Trump said his administration’s policies will help accelerate the growth of U.S. automakers, even as industry leaders have expressed concern about the effects of his actions.
“Plants are opening up all over the place. Deals are being made,” Trump said. “That’s a combination of the election win and tariffs — it’s a beautiful word, isn’t it? That along with our other policies will allow our auto industry to absolutely boom. It’s going to boom.”
The U.S. this week imposed 25% tariffs on imports from Canada and Mexico, while doubling the tariffs already in place for Chinese goods.
Trump claimed his decision was well received by top executives from the “majors,” apparently alluding to the three largest U.S. automakers — Ford, General Motors and Stellantis.
“Spoke to the majors today, all three, the top people and they’re so excited,” he said.
Despite Trump’s claims, it’s unlikely that top brass from the three companies were thrilled at his decision to make good on his threat to impose tariffs.
“All automakers will be impacted by these tariffs on Canada and Mexico,” said John Bozzella, the CEO of the Alliance for Automotive Innovation, a trade group representing most major U.S. automakers except Tesla.
“Most anticipate the price of some vehicle models will increase — by as much as 25 percent — and the negative impact on vehicle price and vehicle availability will be felt almost immediately,” Bozzella added.
Ford CEO Jim Farley has previously conveyed his concerns about tariffs.
“Let’s be real honest: Long term, a 25% tariff across the Mexico and Canada borders would blow a hole in the U.S. industry that we’ve never seen,” Farley said at an investor conference last month.
Meanwhile, Stellantis told dealers the tariffs would put some of its major “brands at a competitive disadvantage versus Korean, Japanese and European importers,” in an email obtained by Reuters.
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The concern appears to be shared by Republicans on Capitol Hill, who fear tariffs could lead to higher prices for their constituents and hurt the U.S. economy.
Trump, though, seems unmoved.
“There will be a little disturbance, but we’re OK with that,” Trump said. “It won’t be much.”