Toyota has announced a US$1 million donation toward the upcoming US presidential inauguration, joining American automakers Ford and General Motors in similar commitments. This strategic move reflects Toyota's efforts to maintain positive relations in the US market amid previous tensions over Mexican manufacturing plans and potential tariffs.
In December 2024, the Japanese automaker committed US$1 million to support the presidential inauguration scheduled for January 20, 2025. The decision comes as Toyota aims to strengthen its position following earlier criticisms during Trump's 2017-2021 presidency.
According to reports from Nikkei Asia and Reuters, Toyota emphasized that the donation demonstrates its commitment as a US market operator to supporting significant national events, while also considering industry peers' actions.
Ford Motor and General Motors had already pledged US$1 million each before Toyota's announcement. The American manufacturers will also provide vehicles for the inauguration ceremony, though Toyota has not indicated similar plans.
Beyond the automotive sector, major technology companies including AWS and Meta have announced comparable donations.
The donation comes as Trump has declared his intention to impose a 25% tariff on all imported goods from Mexico and Canada upon taking office, a policy that could significantly impact automakers operating factories in Mexico that serve the US market.
This isn't the first time Toyota has faced such challenges. In January 2017, Trump criticized Toyota's plans to build a Mexican factory for US-bound Corolla production, threatening tariffs. In response, Toyota announced a US$10 billion US investment over five years and later partnered with Mazda to establish an Alabama plant for domestic Corolla production.
However, despite previous tensions, Toyota announced on November 8, 2024, a US$1.45 billion investment to expand production of next-generation Tacoma trucks in Mexico, including at the previously contested factory.
Industry observers note that Trump's proposed 25% tariff on Mexican and Canadian-manufactured vehicles could significantly impact Toyota, particularly given their increased production plans in Mexico.
The effectiveness of the inauguration donation remains uncertain. A senior Toyota executive has indicated that the company needs to continue emphasizing its contributions to US manufacturing.
Toyota currently operates ten US facilities, including five assembly plants and five parts factories. Their 2023 domestic production reached approximately 1.2 million vehicles, representing over half of their US sales. Notably, these facilities are predominantly located in states that supported Trump in the 2024 election.
The stakes are particularly high for Toyota, which has found success in the US market with its hybrid electric vehicles, boosting profitability despite challenges in China. Any significant market disruption could leave Toyota facing difficulties in both its American and Chinese operations.