Toyota Disappointed with Trump’s Latest Tariff Threat

Toyota is disappointed with US President Donald Trump’s latest move in the administration’s international trade war. The Japanese automaker has termed it a “major setback” for American consumers, and said it shows the company’s investments in USA are “not welcomed” and that contributions from its American employees are “not valued.”

Related: Honda to Shift Acura Production from USA to China Amid Trade War

Trump issued a new directive Friday giving Japan and the European Union 6 months to renegotiate their trade deals with the US, so that the “American automobile industry, its workforce, and American innovation” are protected.

Toyota Corolla Hybrid at Los Angeles Motor Show

According to White House, it will “address the threatened impairment” of national security from auto imports. To this, Toyota responded in a statement:

“Our operations and employees contribute significantly to the American way of life, the U.S. economy and are not a national security threat.”

EU Trade Commissioner Cecilia Malmstrom also denounced Trump’s comments, saying “we completely reject the notion” that Europe’s car exports are a national security threat.

Related: Trump’s Trade War Delivers Unintended Benefit to China’s Auto Industry

Toyota said it has been “deeply engrained” in USA for more than 60 years and has invested over $60 billion in the country, employing more than 475,000 Americans. Toyota added that “history has shown” that limiting imports of vehicles and parts is “counterproductive in creating jobs, stimulating the economy and influencing consumer buying habits.”

The automaker said auto tariffs would reduce consumer choice and even impact American automakers because vehicle parts used for manufacturing in the U.S. come from various countries. “If import quotas are imposed, the biggest losers will be consumers who will pay more and have fewer vehicle choices,” Toyota said.

from CNBC

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