Toyota Says Steel Import Tariffs Will Make US Cars More Expensive
Toyota has told American car buyers to brace for higher prices in the near future, in the wake of President Trump’s decision to slap large tariffs on imported steel and aluminium.
Despite saying that it uses around 90 per cent US-made steel and aluminium in the cars it makes in that country, Toyota says the new 25 per cent tariff on foreign steel (10 per cent on imported aluminium) will ‘substantially raise production costs’. That means future customers’ wallets will inevitably take a beating.
Suppliers of metal components will also have to put their prices up, especially where contracts are already in place to source steel from outside the US. Those costs will find their way into the headline price of car makers’ new models.
Steel import tariffs have been tried by the US before. The taxes imposed in 2002 were eventually judged to have cost the US economy around 200,000 jobs, and a study concluded that the domestic impacts outweighed any benefits. The tariffs were eventually lifted when the EU responded with similar tariffs punishing key US industries.
Comments
So you increase the cost of making cars in the US and then you increase the cost of car made out side of the US so what’s the point?
They need more money? As if they already don’t have enough. There should be more to it though… But I agree, it is a bit pointless unless you are a country that is not internationally competitive… Ironic since the USA is between the most internationally competitive countries in the world.
Note: you wouldn’t have to enforce arbitary import tariffs if you were making internationally competitive products.
Except in Europe because its about prestige and heritage there. Thats why they say it takes a lifetime to build a reputation but a few seconds to ruin it.
You can’t make internationally competitive products when your assembly line workers need to put their kids through 50k a year community colleges and pay the 3rd mortgage out of their salary. You can do that however when you pay them 15 cents an hour on 12 hour workshifts like they do in China. Do you see the problems and ramifications of this?
I could not agree more
Ugh. instead of america actually competing by making better products with our more skilled workforce we decide “nah” and just use force to get people to buy our products. JUST. MAKE. BETTER. CARS.
Your more skilled workforce?
Where?
The Japanese and the Germans have been kicking America’s ass in technology for the last 60 or so years
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You really don’t understand tariffs do you? Toyota has to increase the price because production, importing and material costs have gone up. When these costs go up, profit goes down FORCING the company to increase prices.
And the award for the biggest grill on earth goes to:
insert dramatic drumming
Toyota!
For real not even Audi can top that one…
holy mother of grill.. I think this is the inspiration of all this calamity
This will just hurt everyone. When it was done in 2002 to try to swing steel-producing Pennsylvania votes, what it did most was hurt states and industries that use steel, which really put Michigan into the craphole that everyone else fell into in 2008-2009. This will hurt both foreign and domestic companies that produce just about anything in the United States. Foreign steel is a necessity if American-made steel is inferior or more expensive. Instead of slapping tariffs on goods, let the market decide what is best. If domestic steel companies want more business, then they need to improve their quality or efficiency.
This is what happens when you put patriotism over common sense
YOU DONT SAY..
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