As Ford Authority reported back in early July, Toyota previously proposed the idea of selling U.S. produced vehicles from companies like Ford via its own dealer network in Japan, a notion that came about as a way to help support the Japanese government as it negotiates a new trade deal with the United States amid tariffs imposed on imported automobiles by President Donald Trump. Shortly thereafter, the U.S. did in fact reach a new trade deal with Japan, effectively opening it up for U.S. auto imports. Now, Trump is saying that those imports will include the Ford F-150, specifically.
“They’re taking our cars,” Trump said of Japan in a phone interview broadcast by CNBC, according to Bloomberg. “They’re taking the very beautiful Ford F-150, which does very well. And I’m sure we’ll do very well there and other things that do very well here, will also do well there.”
In addition to opening up Japan to U.S. vehicle imports, the new trade deal would effectively lower tariffs on items coming from that country into the U.S. from the current rate of 27.5 percent down to 15 percent. The trade deal also reportedly involves a $550 billion dollar investment in the U.S. on Japan’s part, while Isuzu Motors announced a $280 million investment in a new facility in South Carolina amid these talks, and Toyota has committed $88 million to boost hybrid production, too.
This deal wasn’t reached without its fair share of controversy, largely from U.S. automakers concerned that it will give Japanese automakers an advantage, if only in the short term. This is because both Canada and Mexico – where many U.S. automakers build vehicles for sale domestically – are still subjected to 25 percent tariffs at the moment amid ongoing negotiations. Despite this, Commerce Secretary Howard Lutnick recently said that the CEOs of American automakers told him they are “cool with” the Japan trade deal.
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