It’s Trump vs. Toyota; the U.S. government is set to impose up to 25% tariff on imported vehicles

MANILA: It has always been funny and conflicting ever since Trump has taken over in the United States. And now, the Trump government has decided to make amendments to the Proclamation 9705, which has given rise to a disrupt in the automobile industry and had automakers to raise their voice against the decision.

If you’re wondering what Proclamation 9705, section 232 is, it stands for the declaration of tariffs on the steel that is imported to America. Mike Pompeo, who is the U.S. Secretary of State, said, “Steel articles are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States”.

To no surprise, Donald Trump, the President of the USA, agreed with Pompeo and his government is all set to impose up to 25% tariff on imported vehicles and parts. Moreover, what’s even more interesting is that the government is blaming the Asian and European automakers for hampering the American automobile industry ever since the 80s.

Responding to the Trump government, Toyota said, “Today’s proclamation sends a message to Toyota that our investments are not welcomed, and the contributions from each of our employees across America are not valued. Almost every American has a Toyota story, and we are very proud of the fact that over 36 million Toyota and Lexus vehicles are still on U.S. roads today. Our operations and employees contribute significantly to the American way of life, the U.S. economy and are not a national security threat”.

As funny as it can get, how come a Toyota car can be a threat to America’s national security? However, it for sure is a blow to the sales of American automobile manufacturers like Ford, Chevrolet, and others. Furthermore, many of the Ford vehicles are actually made in Mexico, and at the same time, many of the Toyota vehicles are produced in Kentucky, USA. With the Japanese automaker raising its voice, we’re pretty sure it’s not going to let the $ 10 billion invested in the U.S. get flushed just like that.

The increase in tariffs will lead to a surge in the prices of even American made Toyota vehicles. The reason? Toyota is a Japanese company, and exemptions only apply to steel coming from Brazil, Canada, South Korea, Argentina, Australia, Mexico, and the member countries of the European Union. Let’s see what the future holds for Toyota and other automakers in the U.S.

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