Toyota North America is warning that if the Trump Administration goes ahead with plans to impose a 25% tariff on imported car parts, it will hurt Toyota's operations in Texas, including the San Antonio production facility, News Radio 1200 WOAI reports.
In a letter to Texas' two U.S. Senators, Toyota North American Executive Vice President Chris Nielsen says if the taxes are imposed, it would force Toyota to raise the price of a San Antonio built Tundra pickup by $2800, which would make the Tundra far less competitive in the vigorous battle for pickup supremacy with strong brands like GMC, the Dodge Durango, and the Ford F-Series.
"That would hurt our employees and customers, stifle our investments, and damage our state's growing economy," Nielsen wrote.
Nielson didn't warn of production cuts or layoffs due to the tariffs, but he did say the tariffs could threaten the '54,000 Texas jobs Toyota is directly responsible for in Texas,' including the San Antonio plant, its dozens of on site suppliers, the Toyota North America headquarters in Plano, and jobs at Toyota dealers.
Nielsen blasted President Trump's claim that the tariffs are a matter of national security, writing, "our Texas workers are not a security threat."