Trump says auto tariffs are permanent and doesn't care if they cause carmakers to hike prices -- 'I hope they raise their

[genxlib]

2. Somehow he believes

That American cars won't also get more expensive.

Even if they were entirely made here (which they aren't), the laws of supply and demand dictate that there will be a greater demand for the cars that are not subject to the tariffs and we all know what happens then... Well, we do but apparently he doesn't.

The idiocy here is that he has personally destroyed the only argument for tariffs. In a stable environment, it would encourage more domestic production. But that only works on the timeframe of decades. No business is going to alter their manufacturing strategy based on the whims of a madman. He has already shown himself to be erratic in the implementation of all sorts of tariffs. Does anyone believe that a company will invest in a multi-billion dollar plant knowing that this policy may not survive the week? Or worse, that it may get reversed after they invest all that money.