Toyota is supporting LG battery plant with $1.5 billion order

Trump has announced that reciprocal tariffs will be going into effect in April, and my guess is that it will lead to countries looking to gain favor or reduce trade deficits.

Toyota is supporting a US LG battery plant with a $1.5 billion order according to Bloomberg.

Trump has said that countries with trade tariffs, who apply VAT to US products or subsidize domestic industries will be charged a reciprocol tarriff on their goods.

Countries can avoid tariffs by reducing tariffs or producing good within the US border. Buying LG batteries within the US borders (instead of sourcing them from outside the US), may be a third way to gain favor.

This article was written by Greg Michalowski at www.forexlive.com.