NEW YORK (Reuters) – Major automakers are bullish on the outlook for the U.S. economy and auto sales, but one big question remains – will President Donald Trump throw a grenade into the sector by imposing sweeping tariffs of up to 25 percent on car and auto parts imports?

FILE PHOTO: A woman photographs cars on display at the 2019 New York International Auto Show in New York City, New York, U.S, April 17, 2019. REUTERS/Brendan McDermid/File Photo

The industry is in “wait-and-see mode,” but the tariffs would be a bad idea, Bob Carter, head of U.S. sales at Toyota Motor Corp, told Reuters on Wednesday.

“If the tariff happened on the auto industry, quite frankly that’s pulling the pin out of the grenade,” he said