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Toyota: Trump’s Tariffs Will Increase Prices of Cars, Trucks

March 6, 2018 0 Comments

On Friday, Toyota issued a blunt statement that car and truck prices will rise under U.S. President Donald Trump’s proposed steel and aluminum tariffs.

The statement said in part that, “…this would substantially raise costs and therefore prices of cars and trucks sold in America.”

Toyota did not say how much prices will increase, but the message was echoed by the American Automotive Policy Council. AAPC president Matt Blunt reiterated his sentiment from mid-February about the proposed tariffs.


“This would place the U.S. automotive industry, which supports more than 7 million American jobs, at a competitive disadvantage,” he said.

There are automakers, like General Motors, that source 90 percent of their steel and aluminum from North American suppliers, but the concern lies in what will happen to the commodities’ global prices. Mark Reuss, who oversees product development of purchasing for GM, said if steel and aluminum prices go up due to trade war, he’s not sure it would lead to higher showroom prices.

“I’m not sure that we would pass, dollar for dollar, those price increases on to the consumer,” he said. “We are here to offset any of those material costs increases or approaches.”

Reuss also pointed out that GM is focusing on mixed material strategy for building cars and trucks, meaning there is greater use of materials like lightweight carbon fiber.

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