Toyota President Calls on Trump Not to Impose Tariffs
Toyota president Akio Toyoda has called on President Trump to make a “careful and appropriate decision” regarding the potential tariffs the president wishes to impose upon auto imports.
Trump has finally received the findings of a probe into whether imported vehicles pose a national security threat. The findings have not been made public, but Trump has 90 days to decide whether to act on them.
In the past Trump had threatened levies of as much as 25 percent on foreign-made vehicles, including vans, SUVs, light trucks, and even auto parts. Both foreign-based and domestic auto manufacturers have been lobbying against this.
Toyoda insisted that negative effects on the US economy and local jobs “should be avoided” and believes, along with companies and governments spanning the globe, that tariffs would hurt the US economy as well as the global auto industry.
According to Moody’s, a financial analysis company, higher US tariffs and retaliatory actions could compromise approximately $500 billion of trade flows, representing about 2.8 percent of 2017’s global imports.
The National Automobile Dealers Association estimates that the cost of US-built cars would go up by $2,270 and the cost of imported cars and trucks by $6,875 should the tariffs go through.
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“Auto tariffs would be a disaster,” said Peter Boockvar, chief investment officer at Bleakly Advisory Group. “So many parts from so many places that criss-cross countries go into the making of an automobile. Of all the tariffs, this would be the most pervasive.”
Trump has agreed not to impose auto tariffs on Europe while the two work on a trade deal while Canada and Mexico have come to a separate agreement, leaving Asian-based manufacturers with the most to lose.
However, the EU has said it will “stick to its word as long as the US does the same” and has prepared retaliatory tariffs of US goods amounting nearly $23 billion should Trump follow through with his threats anyway.
Toyota president Akio Toyoda has called on President Trump to make a “careful and appropriate decision” regarding the potential tariffs the president wishes to impose upon auto imports.
Trump has finally received the findings of a probe into whether imported vehicles pose a national security threat. The findings have not been made public, but Trump has 90 days to decide whether to act on them.
In the past Trump had threatened levies of as much as 25 percent on foreign-made vehicles, including vans, SUVs, light trucks, and even auto parts. Both foreign-based and domestic auto manufacturers have been lobbying against this.
Toyoda insisted that negative effects on the US economy and local jobs “should be avoided” and believes, along with companies and governments spanning the globe, that tariffs would hurt the US economy as well as the global auto industry.
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According to Moody’s, a financial analysis company, higher US tariffs and retaliatory actions could compromise approximately $500 billion of trade flows, representing about 2.8 percent of 2017’s global imports.
The National Automobile Dealers Association estimates that the cost of US-built cars would go up by $2,270 and the cost of imported cars and trucks by $6,875 should the tariffs go through.
“Auto tariffs would be a disaster,” said Peter Boockvar, chief investment officer at Bleakly Advisory Group. “So many parts from so many places that criss-cross countries go into the making of an automobile. Of all the tariffs, this would be the most pervasive.”
Trump has agreed not to impose auto tariffs on Europe while the two work on a trade deal while Canada and Mexico have come to a separate agreement, leaving Asian-based manufacturers with the most to lose.
However, the EU has said it will “stick to its word as long as the US does the same” and has prepared retaliatory tariffs of US goods amounting nearly $23 billion should Trump follow through with his threats anyway.
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