Trump Tanks Toyota Stock by $1.2 Billion in 5 Minutes with a Single Tweet – and it’s BS . . . But Wait, There’s More . . .

In what is a disturbing pattern, Donald Trump caused Toyota’s stock to lose over $1.2 billion in market value in a matter of minutes by tweeting a threat to tax their imports.

 
By Tommy Christopher | January 5, 2017
 

Trump’s tweet:

“Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax.”
1:14 PM – 5 Jan 2017
18,677 replies 30,982 retweets 100,929 likes
 
The stock rebounded slightly, but is still trading down significantly. Even a short-term change can be gamed if someone knows it is coming, and the dollars that investors lose in the interim represent Americans’ jobs and/or life savings.
 
Characteristically, Trump got the facts of his tweet wrong. The new Toyota plant is to be built in Apaseo el Grande, Guanajuato, not Baja.
 
The company employs 365,000 workers in the United States who, along with U.S. consumers, would be hurt by Trump’s promised “retribution” — as opposed to the $7 million in taxpayer money Carrier was handed by Trump and Mike Pence when it shipped 1,300 jobs to Mexico.
 
Trump’s ability to influence stock prices is dangerous by itself, but this pattern also begs for the corporate media to continue to press for financial transparency from Trump and all of his associates, any or all of whom could personally enrich themselves from knowing what he is going to tweet next, and when.
 
 

Toyota Just Responded To Trump’s Ridiculous Twitter Threats – The Donald Is Silenced

By Tyler – January 5, 2017
 

Trump’s tweet:

“Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax.”
1:14 PM – 5 Jan 2017
18,677 replies 30,982 retweets 100,929 likes
 
Trump seems to be ignoring, or simply ignorant of, the fact that Toyota is not an American company. They are, in fact, Japanese. It’s rather hypocritical for Trump to be railing against free trade while demanding a foreign company make their products in the U.S.
 
In response to Trump’s tweet, Toyota issued a statement clarifying where they pointed out that no American jobs will be lost as the result of this new factory. They also laid out some facts regarding their company’s history in the U.S.:

‘Toyota has been part of the cultural fabric in the U.S. for nearly 60 years. Production volume or employment in the U.S. will not decrease as a result of our new plant in Guanajuato, Mexico announced in April 2015. With more than $21.9 billion direct investment in the U.S., 10 manufacturing facilities, 1,500 dealerships and 136,000 employees, Toyota looks forward to collaborating with the Trump Administration to serve in the best interests of consumers and the automotive industry.’

  • “Over the past 30 years, Toyota has produced over 25 million vehicles in the U.S.
  • Over the past 20 years, $2 out of every $3 invested in North America has been spent on U. S. facilities
  • Toyota was the smallest importer of vehicles from Mexico to the U.S. in 2016.
  • In 2015, Toyota exported more than 160,000 U.S.-built vehicles to 40 countries, helping to establish the U.S. as a global export hub.
  • Our manufacturing facilities in Baja, Mexico, established in 2002, support production at our San Antonio, Texas plant, where 3,300 team members produced over 230,000 Tundras and Tacomas in 2016.
  • Recent manufacturing expansions by Toyota in the U.S. include:
    • $360 million investment in Toyota’s Georgetown, Kentucky plant, adding 750 new jobs
    • $150 million investment at its Huntsville, Alabama plant
    • $100 million investment in Toyota’s Princeton, Indiana plant, adding 300 jobs
    • $90 million investment at its Buffalo, West Virginia plant, adding 80 jobs”

 
As Toyota’s statement illustrates, the United States has greatly benefited from trade agreements with Japan and other nations. Are our current trade deals perfect? Far from it. But Trump seems to want things both ways. He rails against trade deals when the cost American jobs, but demands that foreign companies manufacture their products in the U.S.
 
His stance is hypocritical and utterly unrealistic. He cannot demand foreign companies produce their products in the U.S. while railing against free trade.
 
Not sure if he can single out one company to impose a tax on.
Any effort to target specific companies the way Trump has suggested would likely face challenges in U.S. courts and in international trade tribunals.
 
Links to this story:
Trump tanks Toyota stock by $1.2 billion in 5 minutes with a single tweet – and it’s BS.

Toyota Just Responded To Trump’s Ridiculous Twitter Threats – The Donald Is Silenced

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