SAN ANTONIO – Car buyers can expect higher vehicle prices due to a 25% tariff on imported vehicles, Toyota Texas told KSAT in a statement on Thursday.
The company, which operates a large plant on the South Side of San Antonio, said a 25% tariff on imported vehicles is “highly disruptive” and could not “be sustained.”
“Tariffs of this magnitude will lead to significantly higher vehicles prices, further erode affordability and choices for the American consumer and negatively impact the economy, suppliers and the auto industry,” the company’s statement concluded.
>> What to know about Trump’s newest and most sweeping tariffs
Background on tariffs
U.S. tariffs took effect at midnight Thursday, with President Donald Trump imposing high tariffs on goods from 66 countries, including the European Union, Taiwan and the Falkland Islands.
Tariffs range from 10% to as high as 50% on goods entering the U.S., with many products subject to a baseline 10% tariff and higher rates applying to specific countries, according to the Associated Press.
These tariffs aim to protect U.S. industries by increasing the cost of foreign products and reducing trade openness.
The AP also reported that Toyota reported a 37% drop in profits for the April-June quarter on Thursday, which led the company to cut its full-year earnings forecasts largely due to the tariffs.
Read also: