U.S. tariffs on imported aluminum will not only see a cost increase ripple through supply chains of carmakers but also risks retaliation from major partners.

On Friday, Japan’s Toyota Motor Corp stated the imposition of stiff tariffs on imported aluminum and steel by the Trump Administration would significantly raise the production costs of cars and trucks it sells in the U.S.

This higher input costs would have a cascading effect and will raise the prices of its vehicles in the U.S.

“The (U.S.) Administration’s decision to impose substantial steel and aluminum tariffs will adversely impact automakers, the automotive supplier community and consumers,” said Toyota Motor Corp.

Significantly, the Japanese carmaker disclosed that 90% of the steel and aluminum purchased for its vehicles manufactured in the U.S. is imported into the country.

On Thursday, U.S. President Donald Trump had announced that plans on imposing hefty tariffs on imported steel and aluminum in order to protect U.S. steel and aluminum producers.

The move risks retaliation from its major trade partners, including, China, Canada and Europe.

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