What do you think about U.S. President-elect Donald Trump's threat to slap punitive tariffs on Toyota's Mexico-built cars that are imported into the U.S.?

Trump is a showman, all his tweets, threats, posts are for the purpose of showmanship. Looking good, brave, heroic are his only goals, nothing but his image and billions matters to him.

First he has to repeal NAFTA. Tariffs he wants are illegal. But he probably does not care. Or know. Time for Japan to join Asia and stop being an honorary Western country.

Hope he goes for it.

What do you think ...

A 20 percent trade imbalance with Japan doesn't seem like a lot. The imbalance with Mexico is even less, about 8 percent of the total trade.

He's got a point about factory jobs, though. Curious the Dems are so anxious to permit illegal immigrants in, who'll compete with the strata of society they (the Dems) claim the sole ability to represent.

https://ustr.gov/countries-regions/japan-korea-apec/japan

... U.S. goods and private services trade with Japan totaled an estimated $290 billion in 2012 (latest data available). Exports totaled $116 billion; Imports totaled $173 billion. The U.S. goods and services trade deficit with Japan was $57 billion in 2012. ...

https://ustr.gov/countries-regions/americas/mexico

... U.S. goods and services trade with Mexico totaled an estimated $583.6 billion in 2015. Exports were $267.2 billion; imports were $316.4 billion. The U.S. goods and services trade deficit with Mexico was -$49.2 billion in 2015. ...

I think every country in the world should slap punitive tariffs on US cars unless they build them in their country.

US car companies and all associated manufacturers and vendors, plus banks, will force Trump back to earth from outer space. The US car industry will be reeling from losing sales and production of 2 million cars.

Imagine the irony of US car companies having to lay off employees because of Trump.

Toyota exports the least number of cars from Mexico to the US out of all the majors, including the American ones. Therefore his targeting of Toyota is suspicious at best, emotional and incompetent at worst. He is putting all America at risk if found to be targeting Toyota for ulterior motives as you can bet no American company will have it easy anywhere overseas again

I think it is great!

I think it is great as well. Other countries do the same thing. Have you been to an import food shop here in Japan? A small jar of peanut butter that costs $2 in USA is like 800 yen here. If trade were fair when the dollar got weaker the prices would have gone down right? Nope its 800 yen when the dollar was 80 yen to dollar and 100 yen to the dollar too. If it goes up to 120 yen to dollar they will just make it cost 900 yen.

I understand why you would tax something like a car if you are in competition so that everyone wouldnt buy the cheap import. But I didnt know of any trade wars going on over peanut butter from the USA.

You know that the US already has a tariff on imported cars and Japan has no tariff, right?

A small jar of peanut butter that costs $2 in USA is like 800 yen here

A 12% tariff is applied to freight costs as well, but your main culprit is a convoluted supply chain happily ripping blissfully ignorant consumers off (in the most loving, Omotenashi manner, of course) regardless of the products' provenance.

https://www.fas.usda.gov/sites/default/files/2015-10/tpp_details_peanuts_10-20-15.pdf

Trump's big picture is the largely mature demographic of a largely mature market.

We can expect a renewed focus by Japan Inc. on BRICS, Indonesia, Nigeria, Vietnam, Argentina, Romania and Pakistan. And alliances like BIMSTEC - the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation - see Bangladesh, Bhutan, India, Myanmar, Sri Lanka, Nepal and Thailand combining their respective talents to achieve growth in the region, more opportunities for successful partnership/market development.

It's one thing to threaten domestic carmakers - it's another thing to threaten another country's carmaker that's the largest in the world:

http://www.euronews.com/2017/01/06/japan-backs-toyota-over-trump-mexico-tax-threat

https://agmetalminer.com/2017/01/06/toyota-japan-fight-back-against-trump-mexican-plant-tweet/

Basically, Toyota told Trump:

Trump: [threatens]

Toyota: "Nah, we're good" [still goes ahead with the new factory in Mexico]

Trump wants ordinary Americans to pay more for their lower-end but high-quality cars. Helpin' out the little guy, every time!

The tax increase will go into the govt. coffers, not added to the sticker price, so no big deal.

The tax increase will go into the govt. coffers, not added to the sticker price, so no big deal.

Er, no.

Either there's an additional import tax which automatically raises the sticker price (or squeezes already very thin profit margins) or the cars are made in the US where costs are higher, so again the sticker prices will be raised or the automakers' already very thin profit margins are squeezed.

Typically short-sighted. Other countries will then refuse to accept US-made products, and they`ll all go to the WTF for arbitration, which will rule against the US, which is still a party to trade agreements signed by previous administrations. You can't tear up an agreement unilaterally and expect there to be no consequences. This is not the same as being a fatcat casino owner and defrauding small businessmen that can't afford to sue for what has been stolen from them.

He’s out of control before he's even started.

First, he has to revoke NAFTA. Like other treaties of this kind, NAFTA probably has defined transition periods for this case which should be long enough for Toyota not to care. Just more hot air from the Donald...

Consumers will be paying more. It won't make much different for a company's underlying profit as it will just raise the price to compensate it. However, this moves certainly makes the auto union workers pretty happy.

slap tariffs on his ties

People want Japanese cars, they do not want American cars.

ooking good, brave, heroic are his only goals

Mission not accomplished.

It seems like Trump is flailing towards some sort of whimsical command economy.

Trump can unilaterally pull out of NAFTA in months. I know things like this because I have something called "Google," and I can use before posting something.

I think he doesn't know what the Presidency is about.