Noted economist Arthur Laffer warns that President Trump’s proposed 25% tariff on foreign-made vehicle imports could lead to a dramatic increase in prices and threaten the U.S. auto industry.

President Donald Trump said Wednesday he was placing 25% tariffs on auto imports, a move the White House claims would foster domestic manufacturing but could also put a financial squeeze on automakers that depend on global supply chains.

In Northeast Ohio, industry experts are assessing the potential consequences for the region’s auto sector, and much remains uncertain.

Some analysts have warned that Trump's import charges could lead to the temporary shutdown of some US car production, with increased prices passed onto consumers. But the US president told NBC News on Saturday that he hoped foreign carmakers will raise prices as it meant "people are gonna buy American-made cars - we have plenty".

U.S. President Donald Trump said on Saturday he did not warn car industry executives against raising prices as tariffs on foreign-made autos come into force, telling NBC News he "couldn't care less" if they do.

There are now just four shopping days until President Donald Trump's expected whopping 25% tariffs on imported vehicles and vehicle parts take hold on April 3.