Toyota moved U.S.-bound GR Corolla production from Japan to its United Kingdom facility to meet high demand. This shift utilizes spare capacity and secures lower tariff rates than Japanese imports.
The move threatens a trade agreement that caps U.S. tariffs at 10%. This rate applies only to the first 100,000 British-made vehicles exported annually. British manufacturers exported nearly 97,000 cars to the United States last year.
Toyota plans to ship up to 10,000 GR Corollas from the U.K. plant. This volume would likely push total British exports past the 100,000-unit quota. The tariff rate for vehicles beyond the cap jumps to 27.5%. This spike could increase costs for British brands including Jaguar, Land Rover, Aston Martin, and Bentley.