Trump trade war will add $3000 to the price of Toyotas

[Krugminator2]

President Trump’s trade war will add $3000 to the sticker-cost of Toyota’s best selling vehicles, especially pickup trucks and minivans, the company said.“A 25 percent tariff on automotive imports, which is just a tax on consumers, would increase the cost of every vehicle sold in the country,” Toyota said in a statement CNBC reported on Friday.

Toyota reported record profits on Friday. Global net income at Toyota rose from $5.52 billion to $5.91 billion during its first quarter, but executives said on Friday that the increased tariffs could harm Toyota’s bottom line and negatively affect jobs.

For example, CNBC notes, a Toyota Camry sedan, assembled in Kentucky, would cost an extra $1,800 if a 25 percent tariff took effect. A similar cost increase would be seen on the Tundra pickup and the Sienna minivan with an additional $2,800 and $3,000 added to the prices respectively. Fleet customers such as taxi companies, Uber, or Lyft would be affected by these increases as well.

https://www.newsweek.com/trump-trade...ewsweekTwitter

[euphemia]

Even though they are made right here in the USA. Just like Nissan, Honda, and VW.

[euphemia]

And are way better cars than anything put out by Chevy or Ford at the moment.

[Zippyjuan]

The tariff on completed automobiles from Europe is on hold for now but there are tariffs on both automobiles and car parts in the works with other countries including Canada, Mexico, and China, and China makes a lot of parts which go into US made cars. He wants to raise his proposed tariff on those from ten percent to 25%. And that is in addition to their higher costs due to tariffs already in place on steel and aluminum. Most "US" cars have at least a quarter of their parts made outside the USA.

https://money.cnn.com/2018/07/02/new...ffs/index.html

Every US-made car is an import. That's bad news for automakers

All new cars sold in the United States will cost more — to build and probably to buy — if the Trump administration imposes an auto tariff.
That's because every car sold in America is at least partly imported.

The Commerce Department is considering tariffs on cars assembled at foreign plants and on foreign-made auto parts. Every car assembled in the United States contains a significant percentage of foreign parts, according to government data.

"There are no purely American vehicles," said Michelle Krebs, senior analyst at AutoTrader. "These are global automakers who use global sources for all types of parts."

Automakers are already warning that tariffs would raise their costs, in some cases by thousands of dollars per car. General Motors said last week that it could be forced to cut jobs.

US regulators track how "domestic" every car is by measuring the percentage of each vehicle's parts and manufacturing that comes from either the United States or Canada.

According to that measure, the two most "American" cars are both Hondas — the Odyssey minivan and Ridgeline pickup. Three-quarters of each vehicle's components are made in the United States or Canada.

The Honda Civic, Acura MDX, Acura TLX and the Mercedes C-class source 70% from the United States and Canada. The highest-ranked car made by a Detroit automaker is the Chevrolet Corvette, which placed seventh. About two-thirds of its parts and manufacturing are from the United States or Canada.

The only automaker that builds all its American cars at a US plant is Tesla (TSLA). But even Tesla imports roughly half the parts it uses.

American auto parts makers don't have capacity to build all the parts domestically that are currently imported. Most imported auto parts are made in Mexico and other low-wage countries. So the automakers will probably pay the tariffs and pass along much of the cost.

More at link.

Trump promised today the US will be making tons of money off tariffs. Well, the government might. Consumers and businesses will be paying for them.

[devil21]

Even though they are made right here in the USA. Just like Nissan, Honda, and VW.

Perhaps it is an indication of the dollar being devalued instead of any actual tariffs. Seems like no matter which direction we go (making overseas or domestically) the end result is higher prices, which indicates a currency issue, not tariffs.

[oyarde]

Well , I have not seen 3K added to any stickers . If they did get higher how is anyone supposed to know if is just our crap currency ?

[Zippyjuan]

Well , I have not seen 3K added to any stickers . If they did get higher how is anyone supposed to know if is just our crap currency ?

Car and car parts tariffs have not yet gone into effect. Article tried to look at what may happen if they are enacted. The steel and aluminum tariffs are already in effect.

[phill4paul]

Car and car parts tariffs have not yet gone into effect. Article tried to look at what may happen if they are enacted. The steel and aluminum tariffs are already in effect.

Lol.

[Schifference]

If new Toyota's are now going to be $3000 more expensive, I would think that the value of used Toyota's already in the country just went up.

[gaazn]

It will be great because Toyota will stop adding all the stupid LED lights and bells and whistles that no one really needs. Go back to the basics of making a car that gets from point a to point b.

[devil21]

It will be great because Toyota will stop adding all the stupid LED lights and bells and whistles that no one really needs. Go back to the basics of making a car that gets from point a to point b.

IOW, less car, higher price.