Toyota has sent an urgent message to its U.S. dealers to tell local politicians of the ramifications of the Republican party’s plan to heavily tax all imports.
In conversations with members of the House of Representatives’ Ways and Means Committee, Automotive News reports that Toyota dealers told politicians that hitting imports with a 20 per cent tax could force consumers to pay thousands more for vehicles.
In an interview, Toyota North America chief executive Jim Lentz said of the taxes that “Cost is going to go up, as a result demand is going to go down. As a result, we’re not going to able to employ as many as people as we do today. That’s my biggest fear.”
Many multi-national and overseas companies have expressed concerns over President Trump’s proposed import taxes. They fear that by Trump favoring American manufacturing, their sales and profits will be hurt. Prices for consumers are also expected to rise due to any strict import taxes.
According to Republican Representative Trey Gowdy from South Carolina, the importance of foreign automakers like BMW and Toyota cannot be overlooked when making laws.
Although some companies are concerned with border taxes, others aren’t. Boeing’s chief executive recently said that such taxes could have positive effects on the aerospace juggernaut.
PHOTO GALLERY
