Toyota Warns That Mexico Tariffs Could Raise Costs by $1 Billion
- Japanese automaker alerts U.S. dealers of threat in letter
- Sales of popular mid-size truck threated by U.S. trade action
A Toyota Motor Corp. Tacoma pickup truck undergoes an inspection on the assembly line at the company's manufacturing facility in San Antonio, Texas, U.S., on Wednesday, Jan. 20, 2016.
Photographer: Luke Sharrett/Bloomberg
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Toyota Motor Corp. is warning its U.S. dealers the Trump administration’s proposed tariffs on Mexican imports could increase auto-parts costs by more than $1 billion and hurt sales of its top-selling truck.
President Donald Trump’s threat to impose tariffs on Mexican goods may boost expenses by $215 million to $1.07 billion, the Japanese automaker told dealers in a letter seen by Bloomberg. The mid-sized Tacoma could suffer because 65% of the pickups sold in the U.S. are imported from Mexico, the memo said.