Toyota to Absorb U.S. Tariff Costs

In a bold move to mitigate the impact of new U.S. tariffs on imported cars, Toyota Motor Corporation has announced it will cover the additional costs for its suppliers. This decision comes in the wake of President Donald Trump's introduction of a sweeping 25% tariff on all non-U.S. made vehicles, a policy that has sent ripples of concern throughout the global automotive industry.

Industry Voices Concerns

Hideki Takamiya, president of mobility solutions at Starlite, a supplier to major automakers like Mazda, Nissan, and Mitsubishi Motors, highlighted the growing anxiety among parts makers. "Without forging new, balanced partnerships between car manufacturers and parts suppliers, survival is at risk," Takamiya emphasized. The automotive sector is bracing for further uncertainty, with reports suggesting Honda may relocate production from Mexico and Canada to the U.S., a claim that has been swiftly denied by Canadian officials.