A car with Trump's face as its wheels driving up an incline to represent price increases, with a Fox News logo on the top left corner

Andrea Austria / Media Matters

Research/Study Research/Study

Fox dismisses anticipated vehicle price hikes from Trump's tariffs

Trump reportedly warned domestic automakers not to raise prices before saying he “couldn’t care less” if foreign car prices rise

Written by Zachary Pleat

Published

In the days leading up to President Donald Trump's April 2 implementation of 25% tariffs on imported automobiles and auto parts, Fox News and Fox Business personalities dismissed looming price increases the new import taxes are expected to unleash on American consumers. These auto-specific tariffs, combined with 25% tariffs on steel and aluminum and another 25% tariff on Canadian and Mexican imports, are estimated by economists and industry analysts to raise vehicle prices by up to double-digit percentage points and potentially up to $15,000 per vehicle.

The Wall Street Journal reported that earlier in March, Trump privately warned U.S. automakers not to raise prices in response to the tariffs, even though they will be subjected to them. When confronted with this story in a March 29 NBC News interview, Trump denied telling U.S. automakers not to raise prices before saying of foreign car makers: “I couldn’t care less. I hope they raise their prices, because if they do, people are gonna buy American-made cars.” He continued: “I couldn’t care less, because if the prices on foreign cars go up, they’re going to buy American cars.”

  • Experts anticipate Trump’s tariffs will lead to price shocks and disruption of the industry 

    • The Associated Press: “President Donald Trump’s tariffs on steel imports … could wreak havoc on American auto manufacturing, industry leaders say.” AutoForecast Solutions analyst Sam Fiorani told The Associated Press that “raising the price of what is among the most important components of the vehicle is only going to raise the price of an already expensive product.” [The Associated Press, 2/11/25]
    • The Cato Institute explained that because of the integration of Canada and Mexico in the U.S.’ auto market, tariffs on those countries’ imports “will harm US automotive operations and workers, as well as American car consumers.” [Cato Institute, 1/29/25]
    • Cox Automotive chief economist Jonathan Smoke: “By mid-April, we expect disruptions (to) virtually all North American vehicle production amounting to 20,000 fewer vehicles produced per day, which is about a 30% hit to production.” According to CNN, Smoke added: “Bottom line, lower production, tighter supply and higher prices are around the corner, reminiscent of 2021. … April 3rd seems a bit like a doomsday if those tariffs on Mexico and Canada go through.” [CNN, 3/27/25]
    • Bloomberg: Tariffs on Canadian and Mexican imports would hurt the U.S. auto industry and could raise new car prices by $3,000. Bloomberg reported that the tariffs “could add $60 billion in costs to the sector, according to consultant AlixPartners,” much of which would be “passed on to consumers, which could see new-vehicle prices rise by about $3,000, Wolfe analysts have estimated.” [Bloomberg, 2/11/25]
    • Anderson Economic Group estimated that Trump’s “announced duties on imports of aluminum and steel would add another $250 to $800 per gas-powered vehicle and up to $2,500 on EVs,” and stated that it job cuts would be “inevitable.” Additionally, according to Quartz, the group’s study showed “vehicles made in Europe and Asia would see a $800 to $1,600 price hike.” [Quartz, 2/26/25]
    • Anderson Economic Group: Auto tariffs will raise production costs between $3,500 to more than $12,000 per vehicle. According to a CNBC report, multiple analysts agreed that the auto tariffs alone would lead to thousands of dollars in higher prices for all vehicles, ranging from $4,000 to $15,000. [CNN, 3/27/25; CNBC, 3/27/25]
    • Yale’s Budget Lab: Trump’s 25% tariff on automobiles would raise vehicle prices “by 13.5% on average, the equivalent of an additional $6,400 to the price of an average new 2024 car.” According to Budget Lab director of economics Ernie Tedeschi, retaliation from other countries would also result in a reduction of U.S. auto production. [The Budget Lab, 3/28/25; Twitter/X, 3/28/25]
    • Morgan Stanley: Vehicle prices “could rise 11% to 12% to offset the tariffs” by May once auto dealers sell off their stockpiled inventory of new cars. [The Wall Street Journal, 3/27/25]

    Multiple Fox personalities dismissed auto tariff hardships

    • Fox Business host Charles Payne dismissed a colleague’s worries about projected car price hikes between $3,000-$6,000: “You build more GM plants in America, and those cars won’t be tariffed. You don’t have to raise the prices.” Earlier in the segment, Payne said: “Some prices will go up, but … the media scare tactics have been so outrageous.” [Fox News, Outnumbered, 3/27/25]
    • Fox Business host Taylor Riggs: Market turmoil over a 5-10% increase in car prices is just “thinking short term.” Riggs added: “This is sort of is Trump following through with his campaign promise of bringing jobs back to America. But Trump is thinking very, very long term and the market and some of the stocks you are talking about are thinking short term, what happens in the next month. Trump is trying to figure out what happens in the next 5-10 years.” Riggs then said, “We’re hearing maybe prices could go up on average maybe 5-10% initially, until we bring domestic manufacturing back to spur competition to maybe bring prices down.” [Fox News, Fox & Friends, 3/27/25]
    • Fox Business host Dagen McDowell to car dealers selling foreign cars: “Good luck selling a car that next week will be 25% more expensive.” McDowell also said foreign car dealers “just got screwed immediately.” Payne added, “I was just picking up my violin for the Porsche dealers.” [Fox Business, Making Money, 3/27/25]
    • Fox Business guest Michael Balboni dismissed the auto industry saying “this is going to increase prices dramatically right now,” claiming that the industry will adjust accordingly. [Fox Business, Mornings with Maria Bartiromo, 3/27/25]
    • Fox host Todd Piro reacted to news that car prices may go up by $3,000-$6,000 by saying, “I’m going to be the contrarian here and look at the other side of this. … Think about … 20 years from now, I’m telling you, that’s where the money’s going to be made.” [Fox News, Fox & Friends First, 3/27/25]
    • Fox Business guest Chris Fenton dismissed the tariffs “raising the prices of cars” because, he claimed, they will be “a great equalizer” and increase wages while lowering other taxes. [Fox Business, The Bottom Line, 3/27/25]