The Trump administration’s trade war will make Toyota pickup trucks and minivans more expensive, adding about $3,000 to the sticker price of some of its best-selling automobiles, Toyota executives said after reporting record profits Friday.

Donald Trump‘s rationale for the increased tariffs.

Trump has already slapped 25 percent tariffs on several billion dollars of goods from China and is investigating the possibility of imposing similar tariffs on imports from other countries, including autos and 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 it is in the interest of national security.

Tariffs will not just be painful for foreign corporations or investors, Lindland said.

Forcing sudden changes to the automotive supply chain can create problems and raise consumer costs, she said. Even car parts can cross borders more than once during assembly, Lindland said, adding that it also has an effect that ripples outward toward dealers, mechanics and customers.

Read More

LEAVE A REPLY

Please enter your comment!
Please enter your name here