WASHINGTON, March 11 (Reuters) - President Donald Trump

told CEOs of major companies on Tuesday that new tariffs may go

higher than 25%.

"The tariffs are having a tremendously positive impact,"

Trump told the Business Roundtable, brushing off the stock

market reaction. He said they may rise above 25%. "The higher it

goes the more likely it is they're going to build" in the United

States.

He also defended Tesla CEO Elon Musk, who is

leading a White House effort to shrink the federal government.

"We've had some little hiccups, not big hiccups, but we saved a

tremendous amount of money," Trump said.