Jan 5, 2017
Trump says Toyota will face tariffs on cars made in Mexico
The President-elect said the Japanese company would be hit with a "Big border tax" if it went ahead with plans to build Corollas south of the border. American car companies have faced harsh criticism from Mr Trump for building cars more cheaply outside the US. Earlier this week Ford scrapped plans for a plant in Mexico, opting to expand in Michigan instead. Toyota's President Akio Toyoda said the company had no immediate plans to curb production in Mexico. Mr Trump has already targeted American carmakers General Motors and Ford for manufacturing south of the border, resulting in Ford's decision to cancel its plans for a $1.6bn plant in Mexico and expand operations in the US instead. The Nafta free trade area, and the lower cost of labour, makes it attractive for firms to build cars in Mexico for sale in the US. But Mr Trump has said he would end this practice, as it was costing American jobs. Toyota announced in April 2015 it would build a $1bn Corolla factory in central Mexico, but not in the western peninsula of Baja. Construction began at the central Mexico site in November 2016.
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