Wil James, Toyota exec: Border tax a ‘negative,’ could increase costs for consumers

A top Toyota executive on Monday said that an import tax being weighed by congressional Republicans could ultimately bump up sticker prices for consumers.

“Very quickly, we’ve kind of estimated that the border adjustment tax could potentially add an additional thousand dollars on the top of our Camry and that … cost will be passed on to consumers,” Wil James, president of Toyota Motor Manufacturing, Kentucky, Inc., said on Fox Business Network.

“So we see that as a negative from the point of view of increasing the cost of products,” he said.

Toyota on Monday announced a $1.33 billion investment in Kentucky as part of the company’s plan to invest $10 billion in the U.S. over the next five years.

“Although this is our largest individual investment for us here in Georgetown, this is not the only significant investment that we’ve made,” Mr. James said.

“This is just part of the continuation of the investment program that we’ve … had in place,” he said.

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SEE ALSO: Toyota announces $1.33 billion investment in Kentucky plant

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As part of broader tax reform efforts, congressional Republicans have floated a so-called “border adjustment tax” that would impose an across-the-board tax on imports.

Proponents say it would level the playing field with tax policies for products made in America, but others, like Mr. James, say the costs could ultimately get passed on to consumers.