Toyota Exec: Tariffs Have 'Nothing to Do With National Security'
*By Alisha Haridasani*
Japanese automaker Toyota disputes the argument that national security concerns were the reason for imposing tariffs on a myriad of goods entering the United States.
"We don't think this is really about national security," said Zack Hicks, CEO and president of the Toyota Connected unit in North America, in an interview with Cheddar on Tuesday.
Hicks warned that the consumer and American workers would eventually bear the brunt of the additional tax.
Toyota, like several foreign auto companies, has been producing many of its vehicles in America for the past three decades, employing more than 170,000 people in the U.S.
The Trump administration implemented tariffs on foreign steel and aluminium in May, which analysts said will hurt manufacturing in America. The president is also engaged in a heated trade war with China, taxing high tech imports to punish Beijing for alleged intellectual property theft.
The countries that have been hit by U.S. tariffs have retaliated, slapping taxes on American-made products, leaving many companies worried about the future of global supply chains and operations.
Toyota's comments came on the same day it launched a [car-sharing program](https://cheddar.com/videos/toyota-launches-car-sharing-service-in-hawaii) in Hawaii that would help the company tap into the growing appetite for a shared economy, which threatens to further upend the auto industry in the U.S.
The new service, Hui, was built in partnership with Servco Pacific, Toyota’s distributor in the island state. Users can choose from a fleet of Toyota and Lexus cars to rent out by the hour or for the day, with prices starting at $9.95 per hour with gas, insurance, taxes and fees, and roadside assistance.
“One of the nice features is, once you find the vehicle that you want, as you walk up to it, you can use your phone to unlock and lock the vehicle,” said Hicks.
In addition to Honolulu, Hicks said Toyota is looking to roll out the service in cities in Spain, Ireland, France, and Norway, with plans to potentially expand across other American cities as well.
“We’re working with a partnership model that allows our dealers and our distributors to be able to either white label it, and in the future we may even consider maybe having a national brand.”
Hui is Toyota’s gateway into the shared mobility market, which is expected to generate revenues of more than [$5 billion in 2021](https://www.bcg.com/en-us/publications/2016/automotive-whats-ahead-car-sharing-new-mobility-its-impact-vehicle-sales.aspx) while denting car sales in the long run.
"We are transforming into a global mobility company," said Hicks. "Even if that means some disruption to our business model."
Last year, General Motors launched a similar service called Maven, while start-ups like Zipcar, Fair, and Flexdrive have all started to disrupt car ownership through subscription models.
For the full segment, [click here.](https://cheddar.com/videos/toyota-introduces-new-ride-sharing-program)
Wealthfront’s CFO Alan Iberman talks the $2.05B IPO and the major moment for robo banking as the company bets on AI, automation, and “self-driving money."
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
