Toyota is latest Trump target over Mexico production plans
DETROIT — President-elect Donald Trump has trained his sights on Toyota in his latest effort to badger a company into building its products in the U.S. rather than Mexico.
Trump tweeted Thursday that if the Japanese automaker goes ahead with plans to build the compact Corolla in a new factory in Mexico instead of the U.S., it faces a “big border tax” when it ships the cars north.
The threat echoed those targeted at Ford Motor Co. and General Motors Co. Trump has repeatedly threatened Ford with a 35 per cent tax on small cars made in Mexico, and this week he called out GM for importing cars from south of the border. He also has made similar threats against companies outside the auto industry.
Nearly all automakers build small cars in Mexico to take advantage of lower wages. Consumers generally pay lower prices for small cars, making it difficult to cover higher labour costs in the U.S.