Investing.com -- U.S. President Donald Trump signaled Thursday that he might increase auto tariffs soon to encourage carmakers to boost their investments in the United States.
"I might go up with that tariff in the not too distant future," Trump said during a White House event. "The higher you go, the more likely it is they build a plant here."
Automakers have been asking the White House to lower the 25% tariffs Trump previously imposed on vehicles. The Detroit Three automakers have expressed opposition to a deal that would reduce tariffs on British car imports while maintaining them on vehicles produced in Canada or Mexico.
Trump pointed to several recent investment announcements as evidence of his policy’s effectiveness. These include General Motors (NYSE:GM)’ plan announced this week to invest $4 billion in three U.S. plants and relocate some SUV production from Mexico to the United States. He also mentioned Hyundai (OTC:HYMTF)’s $21 billion investment announced in March, which includes a new steel plant in the U.S.
"They wouldn’t have invested 10 cents if we didn’t have tariffs, including for manufacturing American steel, which is doing great," Trump said.