The Trump administration’s trade war will make Toyota pickup trucks as well as minivans more expensive, adding about $3,000 to the sticker cost of some of its best-selling automobiles, Toyota executives said after reporting record profits Friday.
Global net income at the Japanese automaker rose via 613.0 billion yen ($5.52 billion) to 657.3 billion yen during its first quarter ended June 30. nevertheless executives told reporters on a call Friday of which the increased U.S. tariffs could seriously affect Toyota’s bottom line as well as hurt jobs.
“A 25 percent tariff on automotive imports, which is actually just a tax on consumers, might increase the cost of every vehicle sold within the country,” Toyota said in a statement.
The extremely well-liked Toyota Camry sedan, which is actually assembled in Kentucky, might cost an extra $1,800 if a 25 percent tariff were to take effect, the company said.
Toyota’s full-size pickup, the Tundra, as well as the Sienna minivan, which are also assembled within the U.S., might cost an extra $2,800 as well as $3,000, respectively.
Even fleet customers, such as drivers for taxi companies or ride-hailing services such as Uber as well as Lyft might be hit by increases.
“of which is actually not helping those blue-collar workers who voted for Trump,” Kelley Blue Book senior analyst Rebecca Lindland said. “Renegotiating NAFTA is actually long overdue. nevertheless slapping tariffs on an inflexible industry is actually not protecting American jobs, American investors or American consumers.”
Toyota employs 137,000 people within the U.S. at its 10 factories as well as dealership network here, the company said in a statement.
“They are not a national security threat,” Toyota said, alluding to President Donald Trump’s rationale for the increased tariffs.
Trump has already slapped 25 percent tariffs on several billion dollars of goods via China as well as is actually investigating the possibility of imposing similar tariffs on imports via various other countries, including autos as well as vehicle parts. The Trump administration has justified these tariffs by invoking Section 232 of Trade Expansion Act of 1962, which allows the government to consider tariffs on products when the item is actually within the interest of national security.
Tariffs will not just be painful for foreign corporations or investors, Lindland said.
Forcing sudden modifications to the automotive supply chain can create problems as well as raise consumer costs, she said. Even car parts can cross borders more than once during assembly, Lindland said, adding of which the item also has an effect of which ripples outward toward dealers, mechanics as well as customers.