Japan's auto lobby expresses discontent at Trump's declaration of a security threat from imported vehicles and parts

U.S. President Donald Trump declared last Friday, May 17 that some imported vehicles and parts pose a national security threat to the U.S. leading to serious displeasure among most of its trade allies including the Japan's automakers' lobby. The White House document also hinted that it would seek voluntary export quotas on autos from U.S. trading partners. Though he delayed the 25 per cent tariffs on imported cars for up to six months for further negotiations, his declaration did not go down well with the Japanese automakers.

“We are dismayed to hear a message suggesting that our long-time contributions of investment and employment in the United States are not welcomed,” said Akio Toyoda, chairman of the Japan Automobile Manufacturers Association.

Toyoda, president of Toyota Motor Corp also expressed his concern over the decision. The U.S. remains a key market for Japanese car makers like Toyota, Nissan Motor Co, Honda Motor Co and others.  Automakers opined such tariffs would ramp up car prices, affect the global competitiveness of U.S.-made vehicles and discourage investment in the world's No. 2 automobile market. Vehicles and auto parts are two highly exported items from Asian countries.

All major Japanese car makers have plants in the U.S. About 50% of the cars and trucks sold in the U.S. by Japan's top three carmakers are made in the United States. Toyota announced an investment of about US$ 13 billion in the U.S. between 2017 and 2021 to boost manufacturing and create jobs. This includes US$1.6 billion for a vehicle assembly plant in Alabama on a JV with Mazda Motor Corp.

Toyota says it has invested over 60 billion U.S. dollars in the United States over the past 60 years and employs over 475,000 people in the country directly and indirectly. The company said that the "national threat accusation" made their employees across America feel not valued for their contribution and indicated "our investments are not welcomed."

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