Supply Chain Research

Toyota Motor expects section 232 duties to add $1,800 to $3,000 per vehicle to its U.S. imports. It will therefore either raise prices (a common strategy) or end sales (an unusual move) depending on the model. The company does appear to expect significant changes in the near-term though with seaborne imports of vehicles from Japan down 4% in 2Q sequentially. The bigger issue is components for its U.S. assembly plants, where shipments have surged 34% higher and are led by gearboxes and batteries.