Toyota says U.S. tariffs will substantially increase car prices

I think it likely Japan could be granted an exception, they don't export enough steel to the US anyway

Japan wants to exempt? I understand how this will hurt Japan economically, but I’ve been saying all along that, Japan needs to focus on its domestic economy instead of relying on export markets that no longer exist for Japan. Cars are just one of many Japanese products that no longer have solid international markets. However, Abe and his economist cronies just keep recycling the same bat poop based on economic policies of the 80’s and wonder why they are not going anywhere.

Abenomics will fix this in no time!!

Japan tariffs imports more than any country in the world. Stop complaining

I think it likely Japan could be granted an exception, they don't export enough steel to the US anyway

Yes, but they do export many steel parts made in third countries which may or may not be affected by Trump's confused announcement. (Seriously - this is not the way to introduce such an issue. What the specifics are has everyone scratching their heads.)

How's it feel, Japan? Just tried to buy some Thai rice the other day, but the 900% tariff made it more expensive than the local, garbage white rice. Shoe's on ther other foot and clearly you don't like it and think it's unfair suddenly.

Japan should not expect and exception to made unless some criteria and progress is accomplished.

So Japanese auto's are going to up in price. This is not a bad thing.

Toyota worried about harm being done to its self. That is just rich. Toyota and Nissan and another major player from Japan have had business on their terms for decades now in the U.S. The money train is over. Now you got work a little harder to sell your cars to Americans or any one else.

Japan. Here is an idea. Approve some U.S. Auto factories opening up here in Japan. Putting to work Japanese people that have some English skills and any foreigner in Japan that can speak Japanese English or any other language. Open dialog and the think tanks. Come together and lets bust open some markets. Then you exception could be considered. Japan has the ports and shipping. Lot a smart hard working people living here in Japan of all races and ethnicity. Diversify! Think outside the box. Stop paying massive bonuses to bosses and your stake holders on the boards. Tighten that belt. Spread some money around with hiring, training, creating, researching. I see so markets and opportunities in every place in the world. Yes a little risk. Yes, change can be slow and difficult. But if our ships are sailing in the same direction Japan and the U.S. or anyone else. Its workers and people working together that needs to be the focus. Together we can create something very unique different and special.-----Some may say I am dreamer.---- John Lennon. I know I am asking to much. God forbid the hard core Toyota bosses on the boards in Tokyo change that age ole hataraki way of doing business. I may have chosen the wrong word in Japanese, and have there business model diluted.

The firm was reacting after U.S. President Donald Trump announced tariffs of 25 percent on steel and 10 percent on aluminium, key materials for the auto sector.

Toyota noted that 90 percent of the steel and aluminium it purchases for its US operations comes from the United States.

"Nonetheless, the administration's decision to impose substantial steel and aluminum tariffs will adversely impact automakers, the automotive supplier community and consumers as this would substantially raise costs and therefore prices of cars and trucks sold in America," the Japanese firm said.

Not sure I understand the logic here.

90% of steel and aluminium it purchases for its U.S operations comes from the U.S

Therefore the tariffs will NOT apply

But "Nonetheless..."

Why Nonetheless?

Are you saying OTHER supplies that are part of your supply chain, who might access steel and aluminium imported into the U.S will all of sudden raise their prices? That would make sense. BUT assuming American steel and aluminium suppliers can supply those other manufacturers in the supply chain with the right grade of materials, shouldnt that lead to cheaper components for your overall supply chain?

So Toyota cars produced in the U.S, using U.S steel and aluminum should be cheaper for U.S consumers.

Correct?

I must be missing something.

So, let me get this straight.

Higher tariffs have been showed to have negative effects on the economy of both parties, because you are basically forcing people to pay higher prices on both sides of the equation, protectionism hasn't ever really helped the economy as a whole, but just a small fraction of people who are being "protected", and this protection also makes them more complacent and avoid trying to improve their business, but since simple “zero-sum game” thinking of the economy has become popular because of irrational nationalism, are we going back to a trade war that will make everyone miserable?

protectionism hasn't ever really helped the economy as a whole, but just a small fraction of people who are being "protected", and this protection also makes them more complacent and avoid trying to improve their business, 

you just summed up Japan's economy in a nutshell. everyone paying 400 yen for lettuce and 300 for a tomato to protect farmers

Agree with all the other anti-Japan posters here, well done Trump! Japan deserves to be punished economically for their moral failures and Trump is the one who will finally punish them with these tariffs

(+1 -5) Yeah what ever. The big automakers from Japan have had their way far to long.

It is time for something totally different. I hope they price themselves right out of the market instead of using more plastics and rubbers in their cars. Because that whats coming people as the price of metals rise.

Let the -minus button' s commence.

Why doesn't Toyota put a figure on what they mean by "substantially"? If they buy 90% of their steel from the US and a tariff of 25% is applied to the remaining 10% that's only a 2.5% cost increase on their steel. That doesn't include all the non-steel components in the car, labour, assembly etc. Put it all together and the "substantial" price increase is likely to be less than 1%. Given Toyota's massive profits they can easily afford that without passing any price rises on to consumers.

you just summed up Japan's economy in a nutshell. everyone paying 400 yen for lettuce and 300 for a tomato to protect farmers

I'm also 100% against Japanese protectionism. When the potato chips shortage happened last year I wrote it was all the fault of Japanese protectionism.

That doesn't mean that Trump is somehow right for taking on this horrible economic policy.

"Look, the government of Japan is making their groceries prices go to the roof by implementing dumb protectionist policies that benefit a couple of business, while making nationalistic claims about how they are protecting Japan but in reality this kind of policies make most of the population poorer... WE SHOULD DO THE SAME!"

Agree with all the other anti-Japan posters here, well done Trump! Japan deserves to be punished economically for their moral failures and Trump is the one who will finally punish them with these tariffs

Moral failures?

I get it, you don't care for any criticism of Japan, hence your "subtle" schtick but the tariffs aren't going to improve anything - for anyone.

Why do you think it's happening? Genuine question.

I hope they price themselves right out of the market instead of using more plastics and rubbers in their cars. and why would they price themselves out of the market , GM, Ford, Chrysler will all be paying more for steel as well, so it wont just be Toyota that raise its prices itll be all automakers in the US. US consumers will be the ones that'll hurt in the end. and as we know when automakers profits start to drop first thing to be axed are the autoworkers.

Given Toyota's massive profits they can easily afford that without passing any price rises on to consumers. but they dont thats just it, all automakers will axe workers long before they reduce profits on the vehicle they sell.

Cars are just one of many Japanese products that no longer have solid international markets.

@Disillusioned - nonsense - cars are the one product where Japan still does have a solid international market. Toyota is the world's largest car manufacturer, I believe.

I'm also 100% against Japanese protectionism. When the potato chips shortage happened last year I wrote it was all the fault of Japanese protectionism. That doesn't mean that Trump is somehow right for taking on this horrible economic policy.

100% agreed. Protectionism is bad all round. It is not even a zero sum game, but overall reduces total economic output.