Trump Threatens Auto Tariff Hike to Boost U.S. Investment

U.S. President Donald Trump issued a stark warning on Thursday about a potential increase in auto tariffs, suggesting the move could encourage automakers to ramp up investments domestically.

Speaking at a White House event, Trump remarked, "I might go up with that tariff in the not too distant future." He added that higher tariffs might prompt automakers to construct plants in the U.S.

Automakers have been lobbying for reduced tariffs, especially criticizing the 25% tariffs Trump imposed. They particularly disapprove of an agreement that would lower tariffs on British car imports while maintaining tariffs on Canadian and Mexican production.

(With inputs from agencies.)