• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Toyota Warns That Mexico Tariffs Could Raise Costs by $1Bn

Toyota Warns That Mexico Tariffs Could Raise Costs by $1Bn

Toyota Warns That Mexico Tariffs Could Raise Costs by $1Bn
June 6, 2019
Bloomberg

Toyota Motor Corp. is warning its U.S. dealers the Trump administration’s proposed tariffs on Mexican imports could increase auto-parts costs by more than $1bn and hurt sales of its top-selling truck.

President Donald Trump’s threat to impose tariffs on Mexican goods may boost expenses by $215m to $1.07bn, the Japanese automaker told dealers in a letter seen by Bloomberg. The mid-sized Tacoma could suffer because 65 percent of the pickups sold in the U.S. are imported from Mexico, the memo said.

Toyota planned to deliver 246,000 Tacoma models this year, including 160,000 assembled in Tijuana, Mexico, it said. The remainder are produced at a factory in San Antonio, Texas.

In a pair of tweets on May 30, Trump warned of tariffs ranging from 5 percent starting June 10 that could ramp up in increments to 25 percent in October unless Mexico’s government stops immigrants from entering the U.S. illegally.

‘Rough Estimates’

Bob Carter, Toyota’s executive vice president for North America, sent the letter to U.S. dealers late Monday, saying the added cost projections are “rough estimates” and the full implications for the auto industry remain unclear.

“This is not just an issue for our company. These tariffs will have an effect industry-wide,” Carter said in the letter, which noted General Motors Co. is the largest automotive importer from Mexico. He also said Toyota remains hopeful negotiations between the U.S. and Mexico on trade and immigration policy will lead to a deal that can be “resolved quickly.”

News of the letter was first reported earlier Tuesday by Reuters.

The notice to dealers comes as Toyota has taken an unusually public stand against the White House’s trade policy, saying last month that threatened tariffs against auto and car parts from Japan sent a message to the company that its billions of dollars of investments in the U.S. aren’t welcome.

Those shifts in U.S. trade policy were flagged as a key risk in Toyota Motor Credit Corp.'s annual 10-K report filed on Tuesday.

“Our business is substantially dependent upon the sale of Toyota and Lexus vehicles in the U.S. Changes in the volume of sales may result from governmental action or changes in governmental regulation or trade policies,'' including “changes in import fees or tariffs on raw materials or imported vehicles,'' the Toyota financial unit said in its filing.

RELATED CONTENT

RELATED VIDEOS

Logistics Automotive
  • Related Articles

    General Motors Warns Trump: Tariffs Could Lead to 'Smaller GM' and Fewer Jobs

    U.S., China Are Close to a Trade Deal That Could End U.S. Tariffs

    GE: Tech Upgrades Could Cut Power Plant CO2 Emissions by 1Bn Metric Tons

Bloomberg

As Retail Sales Improved, Inventories Rose Less in February Than Expected

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: Amazon Offers Help With Distribution; NYC Delays Vaccinations After Moderna Shortage

    Coronavirus
  • container port

    New Global Visibility App Sees Delays Before They Happen

    Logistics
  • Can Employers Require Employees to Get the COVID-19 Vaccine? Part 1

    Watch: Can Employers Require Employees to Get the COVID-19 Vaccine? Part 1

    Coronavirus
  • U.S. Vaccine Rollout Hindered by Faulty Coordination, Messaging

    WHO Fumes at Western Drugmakers As China Fills Vaccine Void

    Coronavirus
  • Smartphones

    Podcast | Why We Need to Ramp Up Recycling of Old Tech

    Logistics

Digital Edition

Scb home issue 27

2020 Supply Chain Innovator of the Year

VIEW THE LATEST ISSUE

Case Studies

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

  • LSP Wows Global Client, Quickly Advances to Become End-to-End Provider

Visit Our Sponsors

6 River Systems ArcBest Armada
aThingz BluJay Burris Logistics
DSC Logistics DCSA (Digital Container Shipping Association) DHL Resilience360
Genpact GEP Honeywell Intelligrated
Infor Logility Magnitude Software
MPO Old Dominion Oliver Wight
OpenSky Ports America Purolator
QAD Precision Red Classic Riskmethods
TGW Systems Transportation Insights Watson Land Company
Westfalia Technologies Workjam Yang Ming
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright © 2016 - 2018 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing