Toyota Could Kill Off Some U.S. Models If Trump Enforces Tariffs

Toyota might stop importing select models into the United States if President Donald Trump follows through on his threats to raise vehicle tariffs, Bloomberg reports.

According to chief executive of Toyota’s North American operations, Jim Lentz, the automaker is analyzing how tariffs could affect each of its models.

“If it winds up being 10 percent or 25 percent, almost on a series-by-series basis, we’ve got to evaluate what we’re going to do. In some series, we may raise prices. On other series, we may stop imports, and then consumers will have less choice,” Lentz said.

While the Japanese automaker is in the process of building its 11th factory in the United States, it still imports many vehicles into the country. In fact, more than half of the 2.4 million vehicles it sold in the U.S. last year were imported from overseas.

Toyota’s most popular model, the RAV4, is imported into the United States from China and Canada. Additionally, Canada also supplies 95 per cent of the Lexus RX models sold in the U.S.

A host of models are built and sold in the United States in high numbers. Most notable is the Camry, which sold 387,000 vehicles last year, 90 per cent of which were built in Kentucky.

Nonetheless, potential tariffs are a matter of critical importance to Toyota and Lentz admitted that the carmaker may have to produce additional models in the United States.

“Could politics play into that? Could we decide, even if we could build them cheaper somewhere else, to build them in the U.S.? It could happen, but you don’t want to do too much of that – you’ve still got to run a business”, he said.­

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  • Doodz

    Yawn…

  • Six_Tymes

    don’t care, too many cars anyway.

    • SpongeBob99Swell

      ..too many cars to the point where it has become the #1 biggest automaker of all-time?

      “Coincidence, I think not!”

      • Six_Tymes

        relax, i didn’t word it good enough for you, didn’t mean to direct at toyota, i just meant in general.

  • SpongeBob99Swell

    Oh fuck….

    #PrayForToyota

  • Paul

    They’ll just find ways to build the more popular ones here.

  • Nihar

    Toyota won’t kill off anything, they’re Toyota…

  • brn

    Maybe Toyota should go to their own government and talk to them about fair trade.

    • diesel_vdub

      While I don’t disagree, it would have minimal if any impact on sales of US produced vehicles in Japan. US built cars are simply too big and bloated for Japan.

      • (⌐■_■)

        what “car”? didn’t Ford kill off literally all “cars” from their line up?

        • diesel_vdub

          Ford is not the only US manufacturer. GM still builds many cars and FCA still builds the 300, for now at least.

          • Bob White

            The 300, Charger and Challenger are built in Brampton, Canada and would be hit with tariffs also. Do you really thing Japan would buy that barge?

      • MarketAndChurch

        sadly, I have to agree with this. But still, dropping tariffs on US cars in Japan would be a good gesture and allow Japanese companies to dodge US tariffs, even if no US cars get sold in Japan.

        • brn

          Exactly. Japan makes it difficult to sell US products (not just cars) in Japan. The exceptions would be the ones they can’t produce themselves. The level of protectionism in Japan is very high. Significantly reducing protectionism wouldn’t have an immediate impact on product sold in Japan, but the gesture would do a lot.

  • Thunderbolt

    Don’t worry folks, it’d be over in 2 to 6 more years, but if Toyota wants to start slicing and dicing, it should start with the Johnny comes lately Supra, it’s overhyped, and overpriced,

  • MarketAndChurch

    This is not good, I’m heavily considering the upcoming hybrid Rav4. It’s between that and the upcoming hybrid CR-V, I wonder if the CR-V is also imported too.

  • Six_Tymes

    HEIL! HILARY

    • Doodz

      I know right?! How quickly they forget the nightmare alternative.

  • JBsC6

    Boohoo China imposes a 25percent tariff on import sales and forced joint ventures in local production. Europe enforces a 10 percent tariff but the media goes nuts if the USA imposes equal tariffs to those countries instead of its 2.5 percent tariff..

    Why the media spin ?

  • Honda NSX-R

    I don’t think Toyota has much to worry about

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