Toyota Motor North America and General Motors recently became the latest automakers to submit comments to the U.S. Commerce Department against President Donald Trump’s proposed 25 percent tariffs on imported vehicles and auto parts.
The automakers argue the tariffs harm the companies’ competitiveness and that free trade is the best way to sustain growth and maintain jobs.
Both automakers also stressed that the tariffs would increase the cost of vehicles.
“Like most global automakers, including the Detroit-based companies, Toyota sources most key parts and components locally, e.g., engines and chassis, but also imports certain specialized parts and components,” Toyota said in a statement. “There is no vehicle in the United States, whether from Toyota, GM, Ford, FCA, Daimler or Hyundai, that is sole-sourced from exclusively U.S. parts and components.”
The Camry is built in Kentucky, and 30 percent of the parts are non-American made. Tariffs would increase the Camry’s price by $1,800, Toyota said. Camrys currently sell for $23,645.
GM said the tariffs also risk U.S. jobs if import tariffs on automobiles are not tailored specifically to advance economic and national security objectives.
“General Motors and Toyota were unusually vocal about the impact on the threatened tariffs,” Michelle Krebs, executive analyst for AutoTrader in Detroit, said. “Their comments illustrate clearly how severe the tariffs could be on their companies, their employees and consumers if they are enacted.
Last month, the Alliance of Automobile Manufacturers warned that tariffs would adversely affect the American automobile industry.
In its comments to the Commerce Department, the alliance said tariffs could limit buyer’s options by raising costs and hurt jobs and investment.