U.S. President Donald Trump said on the 12th (local time) that he may soon raise the current 25% tariff on foreign cars.
At a bill-signing ceremony at the White House, Trump noted, "I imposed a 25% tariff on all foreign cars to better protect American auto workers" and said, "I could raise this tariff further in the near future."
He argued, "The higher the tariff, the more likely they (foreign automakers) are to build factories here." This is interpreted as a measure to pressure foreign car companies to increase their investments in the U.S.
Trump has been imposing a 25% product-specific tariff on imported foreign cars since April 3rd.
The existing 25% car tariff is already impacting South Korea's exports of vehicles to the U.S. If President Trump increases the tariff further, the ripple effects on the South Korean auto industry and economy are expected to be greater.
After starting his second term, Trump raised the tariff on foreign steel and aluminum products from 25% to 50% on the 4th.
Meanwhile, Trump said he discussed electric vehicles with Elon Musk, CEO of Tesla, with whom he had a serious public conflict over tax cuts and other national agenda items, adding, "I like Tesla."