Car manufacturer Toyota recently revealed that President Trump’s trade war will add $3,000 to the price of some of the company’s popular pickup trucks and minivans.
Toyota said that a 25% tariff on automotive imports would increase the prices of vehicles that are even made in the United States, which includes the Camry sedan.
The company’s executives revealed earlier this month after reporting record profits, that the president’s administration’s trade war will make Toyota pickup trucks and minivans even higher in price.
For the first quarter, Toyota reported that global net income saw an increase from 613.0 billion yen to 657.3 billion yen. Unfortunately the tariffs could affect the company’s bottom line as well as jobs. The company has 137,000 employees in the U.S.
Toyota stated, “A 25 percent tariff on automotive imports, which is just a tax on consumers, would increase the cost of every vehicle sold in the country.”
Toyota revealed that even its Camry sedan, assembled in Kentucky, would have an extra $1,800 added to its price tag if a 25% tariff takes effect.
The company’s full-size pickup, the Tundra, and the Sienna minivan, also assembled in the U.S., would cost an extra $2,800 and $3,000, respectively.
“This is not helping those blue-collar workers who voted for Trump,” Kelley Blue Book senior analyst Rebecca Lindland remarked.
She added, “Renegotiating NAFTA is long overdue. But slapping tariffs on an inflexible industry is not protecting American jobs, American investors or American consumers.”
“They are not a national security threat,” Toyota said, in regards to President Donald Trump’s rationale for the increased tariffs.
President Trump has already put a 25% tariff on several billion dollars of goods from China.
“If you put that kind of a tariff on a vehicle or an industry, prices are definitely going to go up on average,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive. “There’s no way around that.”
“While we understand that the administration is working to achieve a level playing field, tariffs are not the right approach,” said The Alliance for Automobile Manufacturers, a Washington-based interest group that represents auto companies on policy issues. “Tariffs on autos and auto parts raise vehicle prices for all customers, limit consumer choice and invite retaliatory action by our trading partners,” it said. “Automakers support reducing trade barriers across the board and achieving fairness through facilitating rather than inhibiting trade.”