>Toyota makes the current version of the popular SUV in Kentucky, Canada and Japan. It originally planned to export the new RAV4 to the United States from Canada and Japan but it is now also considering production in Kentucky as one option,
Seems less new production and shifting it around. Something these companies already did as needed.
This is, as far as I can discern, what drumpf is aiming for, but the collateral damage has been rather extreme.
Once again, the orange bigot proves he's a shit businessman. Wasn't enough to lose the $8bn he inherited - he's here to "fix the world". Fortunately, he has to grfo in 4 years, so this madness shouldn't last forever.
Not really.
Toyota is not building new factories here.
Toyota already builds some RAV4s in the US,
so this won't require new manufacturing capacity.
The company will make fewer of some other model at the US factory,
so it's a wash.
They have been building new factories in the US since 2021 [0][1][2].
They've spent almost $20 billion over the past 4 years reshoring in the United States. The IRA helped, but the COVID era supply chain snarls were a major driver as well.
Most manufacturers in the automotive, electronics, and pharma space have done so since 2021. The difference is, most of these factories are highly automated.
You misunderstood me.
Toyota is not building new factories here in the future as a response to the new tariffs.
They are not expanding capacity.
The tariffs are not bringing manufacturing jobs back.
Light manufacturing for CPGs and FMCGs is not coming back due to these tariffs - toys, apparel, consumer electronics will continue to be assembled abroad, except they will now move back to pre-existing capacity such as Mexico and Malaysia or greenfield opportunities in India.
For intermediate parts and industries with slightly higher margins such as automotive and medical devices, I'd be more optimistic. The capacity always existed in the US, but parts comingling and other optimizations were a better choice from a cost standpoint.
Companies cannot ignore the US market, so capacity - which was already being invested in thanks to the IIJA, IRA, and CHIPS act - will continue to grow, and invest in the US (of course in heavily automated and low personnel processes) or anywhere other than China.
Finally, any conversation of "jobs coming back" is a lie.
The tariff is a de facto blockade on China, and something which the Biden admin tried in a strategic manner, but couldn't because of inevitabely GOP politicking and insincere potshots. The most egregious aspects have been rolled back due to bipartisan and private sector pressure, but those against China remain and continue to have bipartisan backing.
>Toyota makes the current version of the popular SUV in Kentucky, Canada and Japan. It originally planned to export the new RAV4 to the United States from Canada and Japan but it is now also considering production in Kentucky as one option,
Seems less new production and shifting it around. Something these companies already did as needed.
Much of the expansion is thanks to the Biden-era IRA with their battery expansion in NC [0] and Kentucky [1][2], so the momentum was already growing.
The tariffs only sped up this reshoring, by de-incentivizing under-utilization of US plants or comingling of foreign originated intermediate parts.
[0] - https://www.utilitydive.com/news/toyota-begins-production-ex...
[1] - https://www.manufacturingdive.com/news/toyota-investing-kent...
[2] - https://www.automotivedive.com/news/toyota-motor-investing-9...
This is, as far as I can discern, what drumpf is aiming for, but the collateral damage has been rather extreme.
Once again, the orange bigot proves he's a shit businessman. Wasn't enough to lose the $8bn he inherited - he's here to "fix the world". Fortunately, he has to grfo in 4 years, so this madness shouldn't last forever.
I expect most of these pledges to build factories in the US will turn out like the Foxconn deal from Trumps first term.
Trump is already publicly ruminating about an unconstitutional third term, Rep Andy Ogles (R, TN) is working on a constitutional amendment to allow a third term legally: http://ogles.house.gov/media/press-releases/rep-ogles-propos...
Not really. Toyota is not building new factories here. Toyota already builds some RAV4s in the US, so this won't require new manufacturing capacity. The company will make fewer of some other model at the US factory, so it's a wash.
Also, Toyota isn't an American company.
> Toyota is not building new factories here
They have been building new factories in the US since 2021 [0][1][2].
They've spent almost $20 billion over the past 4 years reshoring in the United States. The IRA helped, but the COVID era supply chain snarls were a major driver as well.
Most manufacturers in the automotive, electronics, and pharma space have done so since 2021. The difference is, most of these factories are highly automated.
[0] - https://www.utilitydive.com/news/toyota-begins-production-ex...
[1] - https://www.manufacturingdive.com/news/toyota-investing-kent...
[2] - https://www.automotivedive.com/news/toyota-motor-investing-9...
You misunderstood me. Toyota is not building new factories here in the future as a response to the new tariffs. They are not expanding capacity. The tariffs are not bringing manufacturing jobs back.
It depends on the industry.
Light manufacturing for CPGs and FMCGs is not coming back due to these tariffs - toys, apparel, consumer electronics will continue to be assembled abroad, except they will now move back to pre-existing capacity such as Mexico and Malaysia or greenfield opportunities in India.
For intermediate parts and industries with slightly higher margins such as automotive and medical devices, I'd be more optimistic. The capacity always existed in the US, but parts comingling and other optimizations were a better choice from a cost standpoint.
Companies cannot ignore the US market, so capacity - which was already being invested in thanks to the IIJA, IRA, and CHIPS act - will continue to grow, and invest in the US (of course in heavily automated and low personnel processes) or anywhere other than China.
Finally, any conversation of "jobs coming back" is a lie.
The tariff is a de facto blockade on China, and something which the Biden admin tried in a strategic manner, but couldn't because of inevitabely GOP politicking and insincere potshots. The most egregious aspects have been rolled back due to bipartisan and private sector pressure, but those against China remain and continue to have bipartisan backing.