Trump Describing Auto Imports As Threat To National Security Criticized By Japan’s Toyota

The decision of the United States President Donald Trump to openly declare that auto and auto parts imported into the US were a threat to its national security has been severely criticized by the top Japanese auto maker Toyota Motor on Friday. The Trump administration has announced a delay of six months in the imposing of a possibly 25 per cent tariff on imported cars and car parts into the US.

“Today’s proclamation sends a message to Toyota that our investments are not welcomed, and the contributions from each of our employees across America are not valued,” Toyota Motor Sales U.S.A. said in a statement.

This statement issued by Toyota was made just hours after the signing of a executive order by Trump that says that “automobiles and certain automobile parts are being imported … in such quantities and under such circumstances as to threaten to impair the national security of the United States.” The proclamation also said that the U.S. will wait for another 180 days before deciding what to do next.

According to analysts, if the auto tariffs are implemented by the Trump administration, it would be a major blow to the European and Japanese auto industries and the to ongoing trade negotiations that both are having with the US.

According to a fact sheet of the White House, in 2017, $191 billion worth of automobiles were imported into the US while just 22 per cent of the total automobiles sold in the US market in the same year were accounted for by those manufactured by US companies in America.

Trump has also directed Robert Lighthizer, the U.S. Trade Representative, to follow up on trade related talks with the European Union, Japan and others countries that is deemed fit about imports of auto and parts into the US and aimed to address national the security concerns of the US, said the proclamation.

“United States defense and military superiority depend on the competitiveness of our automobile industry and the research and development that industry generates,” the White House said in a statement on the proclamation. The development and achievement made by Lighthizer would have to be reported back to Trump after six months which would form the basis of the president in deciding whether “further action” is needed, the proclamation further said.

Foreign automobile giants like Toyota have been troubled by Trump’s decision. Toyota said that currently there are more than 36 million Toyota and Lexus vehicles on the road in the U.S.

“History has shown that limiting import vehicles and parts is counterproductive in creating jobs, stimulating the economy and influencing consumer buying habits,” the American unit of Toyota said. “These artificial limitations would reduce consumer choice and impact all automakers since vehicle parts used in U.S. manufacturing are sourced from around the globe. If import quotas are imposed, the biggest losers will be consumers who will pay more and have fewer vehicle choices.”

(Adapted from Asia.Nikkei.com)

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