Toyota Motor Corp said on Tuesday that U. S. President Donald Trump
DETROIT (Reuters) – Toyota Motor Corp said on Tuesday that U. S. President Donald Trump’s proposal to slap tariffs on Mexican-made goods could cost its major suppliers $1 billion, highlighting growing concern in the U. S. auto sector about the potential damage of a new front in the Trump administration’s trade wars.
Trump has said he will apply tariffs of 5% on Mexican goods on June 10 if Mexico does not halt the flow of illegal immigration, largely from Central America, across the U. S.-Mexican border. Those tariffs would gradually rise to 25% by Oct. 1 if Mexico does not satisfy Trump’s demands.
Faced with this threat, major automakers are also planning to delay some vehicle shipments from Mexico, people briefed on the plans told Reuters on Tuesday.
The shipment delays would affect vehicles with high inventory levels on U. S. dealer lots if the tariffs take effect as threatened. Automakers are trying to speed some critical parts shipments this week ahead of the Monday deadline.
