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Trump's talk threatens Toyota and wider sector

Friday, January 06, 2017 - 01:46

Japan's government has hit back at President-elect Donald Trump, who's threatened to tax Toyota if the car company makes vehicles for the U.S. in Mexico. It comes amid wider fears of how Trump could impact on the industry. Laura Frykberg reports.

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His Tweets gain major traction, Trump's latest is no exception. A threat to tax Toyota if it builds cars for the U.S. in Mexico, has had a terse response from the Japanese government. Reminding Trump of how important Japan's car sector is to U.S. jobs. (SOUNDBITE) JAPANESE TRADE MINISTER, HIROSHIGE SEKO, SAYING: "Japan's auto industry has enormously contributed to the U.S. economy by employing 1.5 million people. " Analysts say Trump's tough talk about the industry in the online world. Could be changing the gears of the real one. (SOUNDBITE) (English) CHIEF ECONOMIC ADVISER, CEBR, VICKY PRYCE, SAYING: "I think there is a bit of caution right now in terms of expanding and doing anything hugely innovative in that area until we know what the lay of the land is likely to be." Advice another car company appears to have adhered to. Nissan has reportedly scrapped a deal with Daimler to make luxury cars. Raising questions over the efficiency of a new joint factory Mexico. It all begs the question - of what Trump's brave new world might look like. And will his protectionist policies prove as popular once they're in practice. (SOUNDBITE) (English) CHIEF ECONOMIC ADVISER, CEBR, VICKY PRYCE, SAYING: "I think globalisation has been a good thing overall. The consumer has been paying relatively low prices for things they would have had to pay a lot more for before and I think it is globalisation that has resulted in low inflation across most of the world, which have benefited consumers." And there's been another collision for troubled Volkswagen. The victim this time - a South Korean executive - sentenced to prison over the emissions scandal. A cloud over the company refusing to evaporate. It's the third time this week alone it's faced some sort of legal stall.