Toyota imports 1.2 million cars into the U.S. every year, half of their 2.4 million annual sales.
With the threat of a new 20 per cent border tax, the world’s number one automaker is part of a chorus of cries that the new tax will not only affect the price of the cars in America but will result in layoffs of a good chunk of U.S. workers and dealers employed at Toyota.
And with the tax make, Toyota’s that are manufactured in Japan and Mexico will be out of reach for some American consumers.
The same holds true for not only foreign auto companies but also the big three U.S. automakers who produce cars outside U.S. borders.
This worry is not only pervading the auto industry, but also has the likes of Target, who import such items as baby supplies and BestBuy whose electronics are basically all imported, and worry that their entire profit could disappear if the tax is applied.
Just as the travel ban has had an overreaching negative impact, the ill-advised border tax may just slam the whole U.S. economy and with it the American consumer.