Trump Says He May Hike Auto Tariffs Again To Boost Domestic Production: 'The Higher You Go...They Build A Plant Here'

President Donald Trump says he may hike auto tariffs again in a bid to boost production in the U.S.

What Happened: "I might go up with that tariff in the not too distant future. The higher you go, the more likely it is they build a plant here,” Trump said during a press event at the White House, Reuters reported on Thursday.

The President also hailed his tariffs as the catalyst for increased investment by General Motors Co. (NYSE:GM), which has recently invested over $4 billion in its domestic manufacturing capabilities.

"They wouldn’t have invested 10 cents if we didn’t have tariffs, including for manufacturing American steel, which is doing great," Trump said.

Why It Matters: Trump's comments could cast even more uncertainty over the auto industry, which has already been scrambling to deal with the auto tariffs that will hit automakers with billions of dollars in additional costs as supply chains are rejigged. 

Companies have been pushing to invest in domestic manufacturing, with GM investing over $888 million in its Buffalo, New York, plant to manufacture V-8 engines.

Tariffs have also forced automakers to restructure their manufacturing endeavors, with Stellantis NV (NYSE:STLA) shifting production of some of its vehicles out of Mexico and into Michigan.

However, some leaders in the sector have backed the Tariffs, with GM CEO Mary Barra backing the tariffs as a tool to level the playing field for U.S.-based automakers.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

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