The Trump administration is investigating whether or not car and parts imports are a threat to national security. The investigation is slated to wrap up this summer and it has the entire automotive industry on edge as imports could be subjected to a new tariff of 25 percent.
In a short statement, Toyota stressed they are “not a national security threat” as they have 10 plants in the United States and more than 137,000 Americans working for them. The company went on to say they are “an exemplar of the manufacturing might of America.”
Besides emphasizing their American ties, Toyota said a “25% tariff on automotive imports, which is just a tax on consumers, would increase the cost of every vehicle sold in the country.” As an example, Toyota said the costs of producing the Camry would jump by $1,800 if the tariffs went into effect.
The Toyota Camry is the best-selling sedan in America and it is produced in Georgetown, Kentucky. Despite being made in America, costs would rise as it uses a number of imported parts, just like virtually every other model produced in the United States.
Toyota didn’t say whether or not it would pass the increased costs onto consumers, but it seems likely considering the company referred to the tariff as a tax on buyers. If that were to occur, the price of the Camry would jump from $23,645 to $25,445.
While the sedan segment has been declining for awhile, Toyota managed to sell 387,081 Camrys in the United States last year. If the company were to repeat that feat with the tariffs in place, costs would rise by a staggering $696,745,800.
That is a massive figure, and Toyota said “we believe the only plausible outcome of this investigation is to reject the notion that automotive imports threaten national security.”
