The Toyota Corolla has long represented an excellent vehicle that doesn’t require a lot of money for the purchase.
Entry-level wages require entry-level vehicles and some of us fall in love with those first models we drive when we get out of college or begin to be a professional in life. This little car has been reliable, affordable, efficient, and enjoyable for many who love to drive or even just have the need to drive and want to make the right choice. A proposed tariff that’s put into effect could change all that for the Corolla.
Adding a Huge Price to the Total
Recently the Executive Office has proposed a 25 percent tariff on vehicle imports and this proposed tariff has caused many automakers to respond to what the tariff would cause in the market. This new tariff would cause the small and affordable Toyota Corolla to experience a price increase of $1,800 without any added benefits to the consumer. This means you’d have to pay more to get the same small vehicle you’ve had and enjoyed in the past without getting anything back for the added amount of money that you pay.
Thankfully, the tariff that’s been proposed isn’t in effect as of yet. The President has ordered the Commerce Department to learn whether or not imported vehicles somehow pose a national security threat and should be subjected to a tariff. Considering the number of vehicles that bear names from foreign companies that are built in the US already, it seems a bit of an oddity to look into the automotive world in this way. No one wants to have to pay more for a vehicle just because it wears a foreign badge, especially if you can open the door and see that it’s been assembled in Indiana, Mississippi, Tennessee, or Texas.
Partnerships Would Be Affected
This hefty tariff that’s been proposed would not only cause the Toyota Corolla to be increased in price to the point of being much more expensive, but it would also put a huge wedge in the relationships the US has with many of the foreign automakers. Recently Mazda and Toyota have announced a partnership to build a new $1.6 billion in Alabama. This collaborative effort would employ 4,000 workers and produce nearly 300,000 vehicles a year. This is only one example of the way some foreign brands already make a positive impact on the economy in the US.
Toyota alone has programs that number in the thousands and has invested billions of dollars into the development of vehicles in the US market. Adding any form of an unnecessary tariff on the vehicles that we purchase could bring some of these programs to a screeching halt. This would be detrimental to our educational system, to youth programs, and to cities that are supported by the plants from Toyota. As a global industry, vehicles are strong and widely supported by lines that cross in several ways. Taxing the Corolla in a negative way would absolutely hurt the US economy and global relations.
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