Shares of Toyota Motor Corp. dropped nearly 2 percent in after-hours trading after a report that the Trump administration was weighing new tariffs on auto imports to the United States.
President Trump has discussed plans for tariffs with industry officials, The Wall Street Journal reported Wednesday afternoon, citing sources. It is looking at investigating car imports on national security grounds, the report said, and tariffs could be up to 25 percent.
The administration has already used the same reason to slap tariffs on steel and aluminum imports.
Earlier on Wednesday, Trump signaled that some action on the automaker front was coming. In a message on his verified Twitter account, he said "there will be big news coming soon for our great American Autoworkers. After many decades of losing your jobs to other countries, you have waited long enough."
Around lunch time, as he boarded Marine One for a trip to New York, Trump talked about ongoing negotiations over the 24-year-old North American Free Trade Agreement, a sticking point on which has been rules for imported auto parts.
"I think your auto workers and your auto companies in this country are going to be very happy," Trump said. "Nafta's very difficult. Mexico very difficult to deal with. Canada very difficult to deal with. They have been taking advantage of U.S. for long time. I am not happy with their request. I will tell you in the end we will win. We will win big."
Here's the full story from the Wall Street Journal.