Trump defends auto tariffs, links Venezuela oil move to lower US fuel prices

US President Donald Trump on Tuesday defended his tariff-driven trade policy and broader economic agenda, arguing that higher duties on foreign automobiles and recent US actions involving Venezuela were helping revive domestic manufacturing, lower fuel prices and strengthen national security.

Speaking at the Detroit Economic Club, Trump said a 25 per cent tariff on foreign automobiles was aimed at stopping what he described as an unfair surge of auto imports, with China at the centre of his criticism. He said tariffs were essential to protecting American manufacturing and workers, particularly in the auto sector. “As I promised you, I've imposed a 25 per cent tariff on all foreign automobiles,” Trump said. “I'm standing up for the American auto worker like no president has ever stood up before,” foreign media reported.

Trump said the policy was forcing foreign automakers, including Chinese and Japanese companies, to rethink their strategies and shift production to the United States. “Let China come in, let Japan come in,” he said. “They are and they'll be building plants, but they're using our labor.” He said the objective was to ensure that cars sold in the US were built domestically. “I want to build the cars here,” Trump said.

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Denies impact on US consumers

Rejecting criticism that tariffs raise prices for American consumers, Trump said the cost was being borne by foreign nations and companies. “The evidence shows overwhelmingly that the tariffs are not paid by American consumers,” he said. “They're paid by foreign nations and middlemen.”

He claimed the policy was already driving investment into the auto sector. “US auto factories are now seeing more than $70 billion of new investment,” Trump said.

Citing specific examples, Trump pointed to commitments from major automakers. “Ford has announced it will invest $5 billion across its Michigan and Kentucky plants, creating 4,000 new jobs,” he said.

He said General Motors was moving production back from Mexico. “GM is moving production of the Chevy Blazer and Equinox from Mexico right back here to America,” Trump said. Trump added that Stellantis was expanding its US footprint. “Stellantis is investing $13 billion to expand its US-based manufacturing plant by more than 50 per cent,” he said.

China criticism and national security

Framing tariffs as a response to long-term industrial decline, Trump blamed foreign trade practices for Detroit’s past losses. “You lost 57 per cent of your car industry,” he said. “The good news is you're getting it back.”

He said China had benefited for decades from weak US trade enforcement. “China is one of our biggest taxpayers right now,” Trump said, referring to tariff revenue. Trump described tariffs as both an economic and national security tool. “It's so great for national security,” he said, while criticising legal challenges to his authority to impose them. “You have the Supreme Court now going to rule on whether or not we can use tariffs,” Trump said. “People that are foreign centric, China centric.”

He also claimed tariffs had helped slash the US trade deficit. “In a short period of time, we cut it by 62 per cent,” he said. “They were leaving,” Trump said, referring to manufacturers. “Now they're pouring back.”

Energy policy and Venezuela

Turning to energy policy, Trump said recent US actions involving Venezuela were helping increase oil supply and push fuel prices lower. “Even Venezuela wasn't too bad, was it?” Trump said, calling the operation “as flawless an attack as there has ever been.”

He said the United States was now working with Venezuelan representatives and pointed to the country’s oil reserves. “They have 50 million barrels of oil,” Trump said. “They said take it, it's $5 billion, and we did.”

Trump said the oil was being brought into the US for refining. “We're bringing it in to be refined,” he said. “It's an incredible feeling.” Highlighting the scale of the operation, he said shipping the oil would require dozens of large vessels. “The biggest ships in the world can take one million barrels,” he said. “We need 50 of the biggest ships in the world just to get it out.”

Gas prices and inflation link

Trump linked the move directly to falling gasoline prices. “With our extremely successful operation in Venezuela earlier this month, that number soon is going to go lower,” he said.

He said fuel prices were already down. “Gasoline is now under $2.50 a gallon in 17 states,” Trump said. “Under $2 in many places.” “When gasoline gets to be $1.99 a gallon, everything comes down,” he said. “The donuts come down. The truck that delivers the donuts comes down.”

Trump contrasted the current approach with the previous administration. “Had they won the election less than one year ago, we would have been Venezuela on steroids,” he said.

He said the US was now cooperating with Caracas. “Now I'm Venezuela's biggest fan,” Trump said. “We're working with them.” Trump also tied Venezuela to his security and immigration narrative, accusing the country of sending criminals to the United States. “One of the reasons I was so angry with Venezuela, they emptied their prisons almost entirely into the United States,” he said.

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Broader foreign policy context

Citing the Tren de Aragua gang, Trump said enforcement efforts were underway. “We're getting them out,” Trump said. Venezuela holds some of the world’s largest proven oil reserves, but production has been constrained by sanctions, infrastructure problems and political instability. Energy prices remain a key political issue in the United States, particularly after sharp increases following the pandemic and global supply disruptions, with Trump repeatedly arguing that expanded energy supply is key to controlling inflation and sustaining growth.