US president-elect Donald Trump has alarmed Toyota with a tweet that it will have to face hefty tariffs on cars built in Mexico for the US market if it manufacture Corollas south of the border.
He said the Japanese giant would have to pay much larger “big border tax” if such plan went ahead.
During his election campaign and even after American car makers have faced severe criticism from Mr Trump for making cars more economically outside the US.
Meanwhile Toyota’s President Akio Toyoda announced that the company had no instant plans to hault production in Mexico.
“We will consider our option as we see what policies the incoming president adopts,” said Mr Toyoda, speaking in Japan on Thursday.
The company’s US body issued a statement saying production and employment levels at Toyota in the US would not drop as a result of the new plant in Mexico. The company has 10 manufacturing plants in the US.
“Toyota looks forward to collaborating with the Trump Administration to serve in the best interests of consumers and the automotive industry,” the statement said.
Furthermore in response Japan’s trade minister Hiroshige Seko, said in a statement on Friday, that the new US administration needed to recognize that his country’s auto industry “has greatly contributed to the US economy”.
Not just Toyota Mr Trump has already targeted American carmakers General Motors and Ford for making cars in Maxico.
Following the statement about Ford, Us giant cancelled its plans for a $1.6 billion plant in Mexico and said it would swell operations in the US instead, but said this was due to market deliberations.
In mid-2015 Japanese giant Toyota revealed to build a $1 billion Corolla factory in central Mexico.