Why New Toyotas Are About To Get More Expensive
Toyota is getting ready to adjust vehicle prices in the United States due to the 25% tariffs on imported automobiles.
Key Points
- Toyota expects to raise vehicle prices in response to newly imposed 25% tariffs on imported vehicles, affecting a substantial portion of its U.S. lineup.
- Nearly half of Toyota's U.S. sales come from imports, including models like the 4Runner, Land Cruiser, and GR86, making the company particularly vulnerable to the tariff impact.
- Toyota executives warn of broader consequences, including higher repair costs, reduced vehicle affordability, and potential declines in overall sales due to supply chain disruptions.
In an interview with Wards Auto, Toyota Motor North America COO Mark Templin said that withstanding tariffs is "not sustainable longer term without significant price increases." He knows that new vehicle affordability for most shoppers is already a problem, and the additional price increases from tariffs could make new vehicles inaccessible for many consumers.
Approximately half of Toyota's vehicles sold in the U.S. are imported. Models like the 4Runner, Crown Signia, Land Cruiser, and GR86 are manufactured in Japan, while the Tacoma is produced in Mexico.
That's not to say Toyota doesn't have a significant manufacturing presence in the U.S.— the automaker employs nearly 50,000 people across 11 different plants. Like others, Templin is concerned that the increased costs will seep into every aspect of vehicle production, including material inputs for parts manufacturing. That means it's not just the price of a new vehicle that rises, but also replacement parts—meaning it's more expensive to keep a car on the road. long term
“I have had the chance to visit several policymakers…and we believe the administration understands the consequences of tariffs on imported vehicles and the fragile nature of the global supply chain,” said Templin.
Toyota hasn't specified the extent of the forthcoming price increases, but the company is currently evaluating options as the situation remains fluid. One move the company made was to relocate some GR Corolla production to the UK where it will enjoy a reduced tariff rate once imported to the U.S.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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Yes sure Toyota could give up profits and keep prices low…. I overheard somebody saying that they’re actually in the business making money so I don’t think that will happen consumers will pay the.tariffs until somebody sane gets elected and we try and forget this sad period in America’s history
Some Pain to get gain.The MSRP is a ripoff. My Avalon back in 2006 had a MSRP of $40,000, I PAID $36,000. Toyota could sell their cars at least 10% lower & still make a lot of money.