Car prices across America are about to go up, says the North American CEO of Toyota—perhaps by as much as $400.
New tariffs on steel and aluminum could add anywhere from $130 to $400 to manufacturing costs on cars, says Jim Lentz. And those prices will be passed along to consumers by automakers.
Even though Toyota uses mostly U.S. Steel and is likely to get exemptions from the tariffs on the steel it does import, Lentz says the price of domestic steel is likely going to increase.
“We’re already seeing pressure on domestic steel—in some cases up to 20%,” Lentz said.
And even though aluminum, which faces a 10% import tax, isn’t a big part of Toyota vehicles directly, Lentz notes that it is a component of parts the company buys from suppliers, which could raise the price of those as well.
Lentz, of course, couldn’t speak for other automakers, but the thinking does have universal tones.