logo
Plus   Neg
Share
Email

Toyota Criticizes US Security Threat Finding;Trump Delays Tariffs On Car Imports

Toyota Motor Corp. (TYT.L,TM) criticized U.S. President Donald Trump for declaring auto imports a national security threat. Meanwhile, Trump announced a six-month delay in imposing steep tariffs on auto imports.

Toyota said that Trump's proclamation sends a message to the company that its investments are not welcomed, and the contributions from each of its employees across America are not valued.

The company said it has spent more than $60 billion building operations in the U.S., including 10 manufacturing plants.

On Friday, Trump signed a proclamation saying that "automobiles and certain automobile parts are being imported ... in such quantities and under such circumstances as to threaten to impair the national security of the United States."

The tariffs would deal a major blow to the European and Japanese auto industries if implemented.

The U.S. imported more than $191 billion worth of automobiles in 2017, while American-made vehicles account for only 22% of automobiles sold in the U.S., the White House said in a statement.

The White House set a 180-day deadline for negotiating deals with Japan, the European Union and other major auto exporters. if agreements are not reached within 180 days, the President will determine whether and what further action needs to be taken, White House said.

Meanwhile, Toyota said it remains hopeful that the upcoming negotiations on trade can be resolved quickly and yield what is best for the American consumer, workers and the auto industry.

"History has shown that limiting import vehicles and parts is counterproductive in creating jobs, stimulating the economy and influencing consumer buying habits. These artificial limitations would reduce consumer choice and impact all automakers since vehicle parts used in U.S. manufacturing are sourced from around the globe. If import quotas are imposed, the biggest losers will be consumers who will pay more and have fewer vehicle choices," Toyota said.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Boeing (BA) will consider changing the name of the 737 MAX following its global grounding on safety concerns after two fatal crashes involving the jets in Ethiopia and Indonesia. Chief Financial Officer Greg Smith revealed this in an interview to Bloomberg on the sidelines of the Paris Air Show. He... Workers at Volkswagen AG's only factory in the U.S. have voted against forming a factory-wide union, dealing yet another blow to efforts by the United Auto Workers union to organize plants owned by foreign automakers. According to preliminary results announced on Friday, 833 workers at Volkswagen's plant in Chattanooga, Tennessee, reportedly voted against union representation. International Business Machines Corp. and Cúram Software, acquired by the tech giant in 2011, have agreed to pay $14.8 million to settle alleged violations of the False Claims Act, the Justice Department said in a statement. According to the DOJ, IBM and Cúram allegedly made material misrepresentations to the State of Maryland during a contract award process in 2011 and 2012.
Follow RTT