business

Japanese gov't defends Toyota after Trump broadside over Mexican plant

54 Comments
By Thomas Wilson

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© (c) Copyright Thomson Reuters 2017.

©2020 GPlusMedia Inc.

54 Comments
Login to comment

Chief Cabinet Secretary Yoshihide Suga told reporters on Friday that Toyota was an “important corporate citizen”, while Trade Minister Hiroshige Seko stressed the contribution of Japanese companies to U.S. employment.

Right, but Trump is just saying out loud what many American's have been thinking for years. Japan is not the best at being fair and balanced in their trade issues with the US either.

This is going to get rather interesting I believe, but I sincerely hope it does not become a "tit-for-tat" child's game.

-6 ( +3 / -9 )

Ludicrous. Donald, you're president-elect, not king. There are laws which govern trade. Imagine if every country simply chose to ignore them. You're not only making yourself look petty and foolish, you're playing a very dangerous game.

16 ( +21 / -5 )

“important corporate citizen”

Sounds like an oxymoron. Toyota has helped to hollow out Japan and it will do the same to any other country given the chance.

-1 ( +8 / -9 )

Japanese car companies employ 1.5 million in the US in direct and indirect employment.

They also export 400,000 cars from their US assembly plants. If other countries retaliate with tariffs, the US could lose 2 million cars of production for export, and the result would be a net loss of jobs in the US, in addition to high inflation.

Tariffs always create inflation.

And Japan has 0 tariffs on cars. The US already has a tariff. It's the US that has historically been unfair and dictatorial in trade. I think you have it backwards.

7 ( +16 / -9 )

To be fair, NAFTA was signed.

A tax can't be imposed while it's in place, NAFTA would have to be scrapped.

9 ( +11 / -2 )

Trump has the power to pull out of NAFTA and the WTO very quickly. Congress passed that power to the executive branch years ago. It was passed to give the president power in during a war, but there was no wording in the law to limit the action to any reason.

2 ( +3 / -1 )

Another sign that Trump hates Japan. Better get ready. We need to soften up China and join Asia, which is the future. The West is in deep decline.

-9 ( +3 / -12 )

So Toyota was going to screw over Canada by pulling the jobs from there and relocating to Mexico, then to sell in the US. Looks like Trump did Canada a favor, as long as the cars are still manufactured there. But if he demands they are built in the US, then that's a bigger problem.

3 ( +5 / -2 )

which is the future. The West is in deep decline.

Anything substantitive to back this up? China, like Japan, has very little immigration, and faces the same demographic crisis.

While we'd probably agree the Trump presidency will be a disaster, to say that the west is in a state of decline and China is the "future" seems like a bit of an overstatement

5 ( +8 / -3 )

Trump is right in casting doubts about the globalism. We should not accept globalism without examining carefully about its influences. It is true that the globalism made smart asses fatter.

-2 ( +2 / -4 )

to say that the west is in a state of decline and China is the "future" seems like a bit of an overstatement

The west IS in decline. Since 2008.

Not because of China, mind you.

4 ( +7 / -3 )

I'm suprised that the Japanese could be talked down by Trump. I guess the storys about Japanese national pride are just that, storys.

-2 ( +0 / -2 )

Anything substantitive to back this up? China, like Japan, has very little immigration, and faces the same demographic crisis.

Well Japan has a demographic problem, but it's already a developed economy as well. It's actually facing a similar problem with the developed Western countries, not that that's the point. The point is, China has a still growing population of over a billion. I think they're still okay. The same goes for other Asian/Eastern emerging populous markets. Population + middle class + production and investment = good economy

2 ( +2 / -0 )

I dont understand the Japanese government decision, they should have defended Takata when obama and his henchmen clearly were extorting Takata and other Japanese companies. Trump is right, he also sent the same message to Ford.

-8 ( +2 / -10 )

MarkXJAN. 07, 2017 - 07:47AM JST

So Toyota was going to screw over Canada by pulling the jobs from there and relocating to Mexico, then to sell in the US.

Not true. Why would you assume they are "pulling jobs" without even knowing the facts?

Once Corolla production begins in Mexico in 2019, Toyota Motor Manufacturing Canada Inc. (TMMC) will transform its Cambridge, Ontario North Plant to switch from producing Corollas to mid-sized, higher-value vehicles, marking Toyota’s first major reinvestment in the plant since it opened in 1997. Toyota will also make significant new investments over several years in TMMC’s assembly plants in Cambridge and Woodstock, Ontario to implement TNGA modifications, maintaining the facilities’ importance as a strategic manufacturing hub.

http://corporatenews.pressroom.toyota.com/releases/toyota+manufacturing+billion+mexico+corolla.htm

2 ( +4 / -2 )

Trump is right in casting doubts about the globalism. We should not accept globalism without examining carefully about its influences.

Eh? Trump casting doubts about globalism? He has 150 companies operating in 25 countries. He bragged about paying almost zero tax in the USA. We should not accept what Trump says without holding our nose and examining carefully the BS he comes out with.

8 ( +11 / -3 )

It seems that Trump is saying "Build factories in US if you want to sell something a lot there and all manufactures/goods must be made in USA" I think all other countries would say the same thing "Build factory in my country if you want to sell many here".

1 ( +3 / -2 )

First, allow me to say, I love Japan. So, my comments will most definitely be biased for Japan, and against the U.S., even though I am a citizen of the U.S. but of Mexican descent. If, Trump were to impose a further tax on imports to the U.S. then that is entirely his prerogative. Will this help relations with other countries? I doubt it. Will it improve the U.S. economy? Again, I doubt it.

@kwatt above has succinctly put in very well, " I think all other countries would say the same thing "Build factory in my country if you want to sell many here"."

-5 ( +2 / -7 )

mt9334JAN. 07, 2017 - 09:29AM JST If, Trump were to impose a further tax on imports to the U.S. then that is entirely his prerogative.

No, it's not. Presidents don't have that power. Congress does.

Back to the article, Trump is 100% bullying, claiming he will exercise powers he doesn't actually have for reasons he doesn't understand to sway the support of people he doesn't actually like. It's all just giant puppet theater.

And yet, I don't think most Japanese leaders who are used to how things work in Japan are prepared to call him out on it. Japanese manners and rules of discourse assume that both parties have some degree of shame that must be protected. Japanese government and corporate leaders are going to be out of their element when faced with a tiny-handed nitwit pounding away on his phone's Twitter app instead of doing his job.

If this were a school, the response would be to get the PE teacher to smack around the kid with no shame (Trump), but since that's not possible, I don't think Japanese leadership have any other tool in their toolkit for dealing with him.

1 ( +4 / -3 )

@katsu78,

You are entirely correct...I stand corrected.

I would however urge you to not be fooled by the "rational irrationality" being played by Trump. He is a very intelligent man...and while I disagree with many of his policies, I am not fooled by his very skillful use of this particular Game Theory notion.

0 ( +3 / -3 )

You are wrong, katsu. Congress gave that power to the executive branch in 197.

-1 ( +3 / -4 )

What I have notice when Trump tweets about issues, companies share that are concern with those issues fall a few points then recover a few days latter. I wonder if Trump is deliberately malipuating the Market for his own financial benefit. He is a very smart businessman. I have a saying "A great business man is a criminal that induce action for new legislation".

1 ( +2 / -1 )

Whats to defend? Toyota already lost.Samsung,Hyundai,k-pop and everything Korean has taken over in The U.S. Japan is to stubborn to understand Japanese products are not cutting edge anymore. The oji-san business leaders and their selfish ways puts Japan far behind China and Korea regarding products being sold in the U.S. today.

0 ( +4 / -4 )

Trump needs extra tax money to create wall. Mexican Gov't refused to ay the wall

-4 ( +0 / -4 )

Fair Trade is what is needed. So lets play Tit for Tat. We do what you do. High taxes on Japan cars to be the same as taxes in Japan on US cars. Lets be fair but greedy Japanese Govt. is the problem as they are 1 way and do not believe in fairness.

It's not that they're actively preventing American cars to be in Japan, it's that no one there wants to buy them because they're crap. Americans love buying Japanese cars because they're of better quality then the American ones. I'm talking about North American-manufactured Japanese cars here.

-3 ( +3 / -6 )

That is Trump.... Screams loudly but carries a little stick. It will just take a few companies to call call him out and he'll quit this idiocy. Or at least people will stop listening.

1 ( +2 / -1 )

Trump needs extra tax money to create wall. Mexican Gov't refused to ay the wall

He'll use american tax payer's money to do it, U.S. citizen will foot the bill and TRUMP's friends wall building companies racking the Jackpot, not sure he will stop with Mexican thought, he is an isolationist, I can see him building a wall all around U.S.A, making the country the biggest prison ever made.

1 ( +2 / -1 )

something tells me he's either gonna make himself a living clown and get served a giant crow (e.g. the "wall"), or he's bringing america to irrelevance. we're fine with either way

1 ( +2 / -1 )

Bye USA USA USA. I thought Mexico also in America.remember Make America Great Again slogan. Whats wrong with Trump

1 ( +1 / -0 )

Not sure why Toyota (or any other manufacture for that matter) feels the needs to placate Trump, or seek his sound sage advice on matters of economics? Seriously, he's only known for possessing the Sadim Touch when it comes to how to run a business.

I mean, if you need advice on how to stiff your contractors out of what's owed to them, or give offer corporate welfare to entice a multinational conglomerate to not outsource its workforce that threatens to go to abroad (and they turnaround and say they will use that money to eventually automate their facility and fire 90% the employees anyway), or just need the complete six editions of the Hitchhikers Guide to Corporate Bankruptcy; then yes, he is the bigly Oracle that every Fortune 500 CEO should consult.

0 ( +0 / -0 )

For Takata I don't believe it was worth it building their air-bags in Mexico. = Were almost forced due to price constraints, due to the amount of airbags in vehicles now. = Many airbags used for a car, yet they want the price kept down.

For the Toyota Corolla the base price seems higher compared to KIA Forte/Hyundai Elantra/Honda Civic etc. When reliability is taken into consideration the Corolla is the better car even with the $1k-$2k higher base price. Corolla is one of the best built and most reliable cars, but looks dated compared to the competition and SUVs are selling now with 4 Door sedan cars selling much less.

0 ( +0 / -0 )

The making of Corolla in Japan for the Japan Market end at the end of 2014 if I am correct. Are they made else where is Asia ?

0 ( +0 / -0 )

LOL, this coming from a 6 time bankrupt, racist bigot! show your taxes trump! bottom line, many americans are desperate for a saviour!! first it was Obama, that kinda worked out. But trump is completely unqualified to be president! I'm deeply ashamed of my country! but many caucasians loved his racism! especially the american nazi's!!

-1 ( +0 / -1 )

Laguna: "There are laws which govern trade. Imagine if every country simply chose to ignore them. You're not only making yourself look petty and foolish, you're playing a very dangerous game."

Trump's been making it pretty clear he wants a trade war, with China and whomever else won't play into the unrealistic promises he made to the fools who were dumb enough to buy into it. Sure, he'll guarantee the other countries suffer through tariffs, but he'll hurt people at home even more. For every job given, the salaries won't cover the increase in cost on products people want.

One other things sure, though, Japan is truly panicking over this. They were use to demanding things and getting promises with the TPP, and now that that's scrapped and Trump is going further, they are finally realizing they might not be able to get their way so easily.

0 ( +1 / -1 )

Sir; Toyota is not at fault !> Trump is a child within politics- business must be up to date to meet market demand and Toyota meets public demand and supplies it.America does not ! m

0 ( +1 / -1 )

Had a typo in my post above. The date was 1977.

Revisions to Title 19 by Congress transferred to the president power to impose tariffs through the Commerce Department and US Trade Representative.

1 ( +1 / -0 )

@udondashi: because of dangerous Takagta airbag, Toyota, and other automakers that used Takagi products had to recall all their cars tt installed takatsa'product. Are you saying Japan should help further death by takata airbag?

0 ( +1 / -1 )

This move by Toyota has probably been in the works for a while. While I agree with Trump's position that jobs should be brought back to the U.S. things cannot change on a dime. My fear is he thinks he can do that and it will cause this to blow up in his face.

It is one reason I could not support him in the election.

Regardless I think this will be very interesting and the first year of his Presidency will set the tone for his term in office.

0 ( +0 / -0 )

This is just the start of a protracted evil series of nasty spiteful vindictive programs aimed at alienating countries which annoy this FOOLISH BLOATED DANGEROUS FEEBLE MINDED MUTANT! The world will pay a very high price for the dumb arsed yanks allowing trump to assume control, not only economically but in human lives.

0 ( +1 / -1 )

The American,s have a saying "Trash Talk" and Trump knows how to use this tactic. He a game player, a competitor, Just by his public persona portrait on the media that he is a hard business man and plays hard. Aussie are masters at trash talk and used extensively on the sport field. If you ever played any game against a Aussie, you would of been on the end some great one lines design to get into your head. I assume Trump is using the same tactic which has been so successful in Business for him.

0 ( +0 / -0 )

https://www.cars.com/articles/the-2016-carscom-american-made

I wonder how he would think if he read this as a starting point and researched further?

Whats to defend? Toyota already lost.Samsung,Hyundai,k-pop and everything Korean has taken over in The U.S. Japan is to stubborn to understand Japanese products are not cutting edge anymore. The oji-san business leaders and their selfish ways puts Japan far behind China and Korea regarding products being sold in the U.S. today.

Thanks for the laugh. That was great!!

-6 ( +0 / -6 )

American brand name cars need to improve interior design. Women passengers have to stretch legs to get on or get some one carry on seat. Embarrassing.

.

-3 ( +0 / -3 )

Whats to defend? Toyota already lost.Samsung,Hyundai,k-pop and everything Korean has taken over in The U.S. Japan is to stubborn to understand Japanese products are not cutting edge anymore. The oji-san business leaders and their selfish ways puts Japan far behind China and Korea regarding products being sold in the U.S. today.

I just got back from the states and it's true, practically everything from Asia is Korean. The Korean cars look really great and are priced well.

-1 ( +0 / -1 )

Toyota has been operating its part factories in Mexico many years. It may close Mexican plant but it has Toyota plants in Texas. Trump plan foes not affect too much.

-1 ( +0 / -1 )

No wonder why Mr. Trump is not the world's favorable elected president. Will be a very great president in US since he cares so much about his country.

0 ( +0 / -0 )

...I wouldn't own a Toyota built anywhere other than Japan. Same reason I no longer depend on SONY or PANASONIC or etc.

0 ( +0 / -0 )

Toyota should calculate selling price considering the labor cost to manufacture in US. It's not just wages but the whole package deal to keep workers happy. Even with 35% tax, it might end up cheaper or same. It's all about numbers at the end.

0 ( +0 / -0 )

The US is the world's third biggest car exporter.

All of the world leaders need to tweet this to Trump: If you want to sell your cars here, MAKE them here!!!

1 ( +1 / -0 )

Trump's really full of it. He has already earned his place in history as the president who never paid his taxes. And this man is going to dictate economic policies?

0 ( +0 / -0 )

I hate how automobile makers get special backing from governments. If only a fraction of that support were given to clean technologies we could hand todays young people cities with cleaner air, more convenient infrastructure, and less at threat from climate change. Fie on Toyota, GM and VW. Fie on the lawmakers who kiss their asses. We all pay the bills for their profits.

-1 ( +0 / -1 )

@Presto345

If, a legal tax exemption would be offered to you, would you take it? What if the legal tax exemption would be of the nature that it would reduce your taxes to zero, would you still take it? Or, would your patriotism (U.S.) take over, and you would pay taxes that you were not legally obligated to pay?

Seems to me, if one is able to not pay taxes, legally, then only a fool would pay money to the Government when they are not legally bound to do so, would you not agree?

0 ( +0 / -0 )

seems to me, if one is able to not pay taxes, legally, then only a fool would pay money to the Government when they are not legally bound to do so, would you not agree?

Loopholes are employed to mislead and deprive a country from tax income. Trump has set a great example. The motivation to pay taxes by corporations and individuals will surely be reduced, but he already is trying to forestall that by threatening to slap tariffs on foreign automakers that provide jobs to millions of American people. My reply to your question is totally irrelevant. I am not on the threshold of becoming the leader of a country that sees itself as the greatest nation on earth. Ask Trump and while you are at it get him to submit a report of all his wheeling and dealing and decide whether and in which way he has contributed to the economy.

1 ( +1 / -0 )

But Trump knows Japanese Brand name cars are not imported from Japan. He is targeting anything made in Mexico. and sol in USA

0 ( +0 / -0 )

Presto345,

If, loopholes deprive a country of tax income, would it not behoove law makers to close them? And, if loopholes are available, and legal, then no crime is perpetrated by using them. I have no motivation to pay taxes.....do you?

Trump, being a business man, did what any law abiding citizen would do...namely, take any and all tax exemptions that are legally available. If, one should have a duty to ones country to desire to pay taxes..then surely some people would , knowingly , pass up legal tax exemptions in order to make sure and pay tax revenue. Who does that?

I don't blame you for not liking Trump...I don't like him either. But, his use of tax loopholes, if legal, are nothing to hold against him....or anyone.

0 ( +0 / -0 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites