Toyota: Tariffs Will Lead to Higher Prices, Fewer Sales, Pricier Repairs

Mark Templin, the Chief Operating Officer of Toyota North America, did not directly criticize the Trump administration, but he did not hold back his opinions either. He expressed concerns over the negative impact of Trump’s tariffs on the automotive industry, emphasizing that it affects not only completed cars but also the parts used in manufacturing them. Templin warned that tariffs on auto parts could disrupt the global and fragile supply chains, leading to higher prices, lower vehicle sales, and increased costs for customers. Despite meeting with the Trump administration to discuss these issues, Templin stressed the complexities of the industry, highlighting that it is not easy to quickly shift production facilities. He also mentioned Toyota’s significant presence in the US, with 11 plants and over half of its sales being domestically produced. Templin expressed hope for more favorable trade deals and stated that Toyota is adopting a cautious approach in response to the tariffs.