Trump says he is doubling tariffs on steel imports to 50%

President Trump said that although he gave US automakers “some leeway” with tariffs, he expects automakers to fully bring back domestic auto manufacturing in the next year.

“All of the manufacturers will build their parts here too,” Trump told reporters in the Oval Office in response to a question about tariffs affecting companies like Tesla (TSLA).

Of note, Tesla is considered to have the highest percentage of “Made in America” parts, though no car is 100% made in the US. Tesla’s long-range Model Y and Model 3 vehicles contain 87.5% “total domestic content,” according to a 2024 study by Kelley Blue Book.

“It used to bother me, [automakers] make a part in Canada, a part in Mexico, a part in Europe, and sent all over the place, and nobody knew what the hell was happening,” Trump continued. “I think you build a car, make it in America. … over the next year, they’ve got to have the whole thing built in America.”

The US imposed auto tariffs of 25% on May 3, but the Trump administration carved out an exemption for some auto parts tariffs, stating that they would not be stacked on top of other tariffs. The auto industry has lobbied hard for tariff exemptions since Trump took office.

While many of Trump’s most extreme tariffs are being challenged in court, those cases do not affect auto tariffs, which were implemented using a separate law.

In a press conference with Tesla (TSLA) CEO Elon Musk on Friday afternoon, President Trump repeated his claim that China “violated a big part of the agreement we made.”

Trump also stated that he expects to have a call with Chinese President Xi Jinping, though he didn’t offer any definite details about when such a call would take place.

“I’m sure that I’ll speak to President Xi, and hopefully we’ll work that out,” the president said.

Trump has not yet spoken with his Chinese counterpart during his second term. He previously said he expected to speak with Xi in mid-May after the US and China announced a temporary tariff pause, but that call never occurred.

Trump’s comments come as trade tensions between the US and China ratchet up again. On Friday, Trump escalated his rhetoric against China, and Bloomberg reported that the Trump administration plans to expand tech restrictions on the country.

Tensions between the US and China are rising again after the Trump administration announced it would revoke Chinese student visas, restrict chip design software, and try to block Huawei from selling advanced AI chips globally.

Per Bloomberg, China’s Foreign Ministry called the crackdown on student visas “discriminatory” on Thursday but did not move to immediately retaliate, signaling it was trying to avoid the kind of rapid escalation that brought tariffs to triple-digit levels.

Still, the divide shows that the two countries are far from resolving their issues — chiefly tech competition — and coming to a trade agreement.

Trump has yet to speak with Chinese leader Xi Jinping in his second term, despite hints a few weeks ago after top officials met in Geneva that a call was imminent.

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A top official said that Taiwan will continue to seek a trade deal with the US despite the trade court’s ruling on Wednesday that at least temporarily paused many of President Trump’s tariffs.

The Manhattan-based court ruled that many of Trump’s wide-ranging tariffs, including the 10% “reciprocal” tariffs, were unlawful in a decision that the administration is expected to appeal.

Taiwan is pushing for tariffs lower than the 10% base rate,

Bloomberg reports:

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Tariff uncertainty may be the primary thing standing in the way of lower interest rates, the Federal Reserve’s Austan Goolsbee suggested on Thursday.

Bloomberg reports:

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