AILSA CHANG, HOST:
President Trump has announced that he is imposing a 25% tariff on all car imports. The move is intended to encourage auto manufacturers to build factories in the U.S.
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PRESIDENT DONALD TRUMP: This is very exciting to me. This is the automobile industry, and this will continue to spur growth like you haven't seen. Before I was elected, we were losing...
CHANG: But there are concerns that this will actually lead to higher prices for cars. NPR White House correspondent Franco Ordoñez joins us now from the White House to discuss. Hi, Franco.
FRANCO ORDOÑEZ, BYLINE: Hi, Ailsa.
CHANG: OK, so tell us more about what the president announced today.
ORDOÑEZ: Well, Trump said these tariffs will go into effect next week. They apply to both autos and auto parts. The White House says they're using national security powers to put the new tariffs in place. And they add that about half of the 16 million cars, SUVs, light trucks that Americans bought in 2024 were imports and that even domestic-made cars rely on foreign parts. Now, Trump insists this will boost manufacturing because it'll encourage automakers to build cars and parts in the U.S. rather than import them. And he adds that the tariffs collected will boost government revenues.
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TRUMP: I think our automobile business will flourish like it's never flourished before.
ORDOÑEZ: Now, the United Auto Workers union is praising this decision, but it is also raising concern across the auto industry. Auto stocks, for example, were down today ahead of the announcement.
CHANG: OK. Well, of course, these are just the latest tariffs that Trump has announced. I mean, how would you say all of this today fits into the larger picture of Trump's trade policy?
ORDOÑEZ: Right, Trump's already imposed a bunch of other tariffs on steel and aluminum, as well as other goods from China, Canada and Mexico. And these latest tariffs come just a week ahead of his promised announcement of reciprocal tariffs on imports, which he says kind of punch back on countries that impose tariffs on the U.S. Today, he did say, though, that they would be more lenient than people have been fearing. He also said that today to expect tariffs on lumber and pharmaceuticals.
CHANG: I mean, of course, because Trump's always talking about how he loves tariffs, right?
ORDOÑEZ: Ailsa, he really does. He calls it his favorite word. He argues that they're necessary for national security and as well as a significant stream of revenue for the country. But really, there are risks. Most economists say tariffs will raise prices for consumers, and that could hurt the economy. But Trump - you know, just also, Trump has also been on-again and off-again in rolling out some of these tariffs, and it's just made the markets more volatile.
CHANG: Yeah. OK, well, all of this is happening on a day when Washington is pretty focused on a separate national security controversy. Top officials were discussing U.S. military strikes in a group chat that included a journalist. Did President Trump have anything to say about that?
ORDOÑEZ: He did. I mean, the White House is doubling down in its defense, arguing that critics and the media are making a bigger deal out of this than necessary. Trump called it a witch hunt and said the focus should be more on the success of the strikes on the Houthis in Yemen. But that hasn't stopped concerns. Members of Congress peppered top intelligence officials earlier today over how the journalist was added to the group chat, not to mention why they're discussing such sensitive strike details on an unsecured messaging app. Now, the White House says it is investigating to find out how the journalist was added and to make sure that it doesn't happen again. But Trump, so far, is insisting that he maintains confidence in all of those involved.
CHANG: That is NPR White House correspondent Franco Ordoñez. Thank you, Franco.
ORDOÑEZ: Thank you, Ailsa.
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