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Auto Blog
25-06-2025
- Automotive
- Auto Blog
Toyota Prices Are About to Spike
Another round of price hikes for Toyota and Lexus Starting in July, Toyota plans to raise prices across its lineup by an average of $270. Lexus, the company's luxury arm, will see slightly lower hikes of about $208. That's according to reports from Reuters and Automotive News, which note that Toyota is following other major automakers in nudging sticker prices upward this summer. 2025 Ford Maverick: 4 reasons to love it, 2 reasons to think twice Watch More A company spokesperson says the move is 'part of our regular review of the prices.' But there's a bigger context behind these small-sounding increases—and it's one that Toyota, like several other companies, appears reluctant to talk about directly. Everyone's thinking tariffs, but no one's saying it The elephant in the showroom is President Donald Trump's 25% tariff on imported vehicles and auto parts. Although Toyota denies any link between the new price hikes and the proposed levies, the company's own executives have previously warned about the potential impact. 2025 Toyota Tundra TRD Pro — Source: Toyota In May, Toyota Motor North America COO Mark Templin stated that tariffs would ripple across the entire supply chain, increasing costs for parts, new vehicles, and even repairs. 'Levies on parts will negatively impact the automobile supply chain and lead to higher prices,' Templin said. Other automakers have been more explicit. BMW and Volkswagen are planning price increases in July and have directly linked those hikes to the tariffs. BMW even offered temporary 'price protection' on some models through the spring. Subaru, Ford, and Volvo have already raised prices on certain models—some by as much as $2,000. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. 2025 Lexus LX 700h — Source: Lexus So why isn't Toyota pointing fingers? One possibility: political pressure. Retail giants like Walmart and Amazon previously faced backlash from Trump after linking price increases to tariffs. Companies may now be treading carefully to avoid being publicly called out. Production shifts and the future of the RAV4 There are signs that Toyota may be planning to reduce its exposure to overseas manufacturing. The company is reportedly considering moving more RAV4 production to the U.S. Currently, the RAV4 is built in Kentucky, Canada, and Japan, but keeping the next-gen model in Kentucky could help Toyota avoid potential tariff-related costs. 2026 Toyota RAV4 GR Sport — Source: Toyota That's not a small decision. The RAV4 is Toyota's best-selling vehicle in the U.S. and was the fourth-best-selling vehicle overall in 2024, with more than 475,000 units sold. Final thoughts For buyers considering a new Toyota or Lexus, the message is clear: move quickly if you want to avoid the next round of price increases. While a $270 hike might not break the bank, it adds to a trend of steadily rising vehicle prices across the industry, and there's no guarantee this will be the last bump. The price of admission is going up, but automakers aren't in a hurry to spell out why. About the Author Elijah Nicholson-Messmer View Profile
Auto Blog
24-06-2025
- Automotive
- Auto Blog
Toyota Warns Tariffs Could Impact 2025 Models and Pricing
New Tariffs Put Toyota's 2025 Product Plans in Limbo Toyota has a big year ahead, with fully two dozen new models set to debut under the Toyota and Lexus brand names. But the Trump administration's tariffs has left the carmaker in a state of limbo, while a new ruling by a federal trade court has only complicated matters. The Japanese automaker is stuck in a 'wait and see mode,' David Christ, group vice president and general manager of the Toyota Division, told Autoblog during an interview at Toyota headquarters. Toyota Questions Viability of Entry-Level Models Under the tariffs announced in April, and formally enacted on May 3, automakers like Toyota face a 25% hit on imported autos and auto parts, potentially putting many products 'out of reach for a lot of Americans,' said Mark Templin, executive vice president and chief operating officer, Toyota Motor North America. How to respond to the new tariffs is a question Toyota is still trying to figure out, Templin and other senior executives told Autoblog. The answer could affect pricing, marketing, and manufacturing plans. Toyota has to rethink whether some base models should remain available in the US. Toyota Weighs Tariff Fallout Trying to figure out how to respond to the tariffs is no easy task, as manufacturers have yet to get clear guidance from the White House. The new sanctions are supposed to cover imported autos and auto parts. But how will parts and components that repeatedly cross the border be handled? How will they be applied to parts produced in Mexico and Canada covered by the USMCA trade deal signed during the first Trump administration? Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Meanwhile, Trump has signaled he might tweak the auto tariffs. He's already rolled back duties on imported computers and smartphones, rolled back tariffs on China, and delayed other sanctions. If those weren't complicating matters enough, the Court of International Trade on Wednesday ruled that the president didn't have authority to impose his sweeping tariffs under the International Emergency Economic Powers Act, as Trump claimed. But that ruling has been paused while it's reviewed by a federal appeals court. Tariff Confusion Stalls Toyota's 2025 Strategy 'We need to understand the rules,' one Toyota executive said during a meeting at the automaker's headquarters in Plano, Texas last week. The new legal twist makes that even more challenging – and makes it more difficult for Toyota to move forward on its plans for the coming year, and beyond. One big question: is the product roll-out it has scheduled this coming year still viable? Among other things, Toyota has to figure out how much tariffs might add to each of its vehicles – and whether to pass higher prices onto consumers. It may also have to consider whether to shift production of some parts, components and vehicles to avoid or, at least minimize, the impact of tariffs. Source: Toyota Toyota builds roughly 50% of the vehicles it currently sells in the United States at 11 U.S. plants. That climbs to 80% if you include three Canadian and Mexican assembly lines. But even those could be impacted by the new trade sanctions due to their reliance on imported parts and components. Auto Industry Forecast Slashed as Tariffs Threaten Recession Last year saw U.S. auto sales nip the 16 million mark for the first time since the pandemic – though that remained well behind the 17.5 million record set in 2016. Nonetheless, the trajectory seemed bound to keep climbing. Toyota's target for the industry this year was 16.1 million, with some bullish estimates as high as 16.5 million. But there's widespread expectation that this will drop sharply should the tariffs remain in effect for an extended period. Cox Automotive now forecasts a figure of around 15 million and as low as 14 million should the new trade sanctions trigger a recession. Driving Entry Buyers Out of the Market While Trump has warned automakers not to pass tariff costs onto consumers, Christ said that would be difficult for even the most profitable manufacturers. Rival General Motors, for one, has forecast it could see a $5 billion impact from the new sanctions. For its part, said Christ, how much it passes on to consumers likely will vary by model line and market segment. For one thing, it needs to see what the competition is doing. No matter what product, 'a 25% increase hurts' buyers, he said, though 'maybe the higher-end customer has a little more flexibility in their budget than a low-end customer.' Toyota is particularly vulnerable at the low end, the executive acknowledged, noting that it has six product lines available under $30,000, starting with the Corolla which carries a base price of $22,035. The problem is that for entry-level buyers, even 'a 1% increase (in price) could take away 10% of the market' for affordable vehicles, said Jonathan Smoke, chief economist at Cox Automotive, during a meeting of the Automotive Press Association. Toyota Weighs U.S. Expansion, But New Plants Could Take Years Toyota's policy is to build as many vehicles as possible in the markets where they are sold, noted Templin. And it isn't averse to adding even more capacity. But that isn't as easy as simply throwing a switch. 'You can't simply move production facilities overnight,' cautioned Templin. It could take years to see new assembly plants added to the 11 Toyota already operates in the U.S. About the Author Paul Eisenstein View Profile
Daily Mail
24-06-2025
- Automotive
- Daily Mail
Toyota latest to announce tariff price hikes
Published: | Updated: Toyota has confirmed it will raise prices on new vehicles starting in July. The average sticker price will climb by $270, while its luxury brand Lexus will tack on an average of $208 per car. The Japanese automaker, which consistently ranks highest in US consumer confidence, has been warning of looming price increases since late May. Facing an expected $1.3 billion tariff bill from the US government, Toyota says it has little choice but to pass some of that cost onto buyers. '[Business is] not sustainable longer term without significant price increases,' Mark Templin, Toyota's chief operating officer for North America, said in a recent event with Ward's Auto. 'And the industry already has an affordability problem.' A company spokesperson did not immediately respond to questions about pricing and tariffs. Toyota is just the latest in a growing list of automakers hiking prices in response to the Trump administration's tariff policy. In March, President Donald Trump slapped a 25 percent tariff on all vehicles and car parts entering the US market. The policy was slightly eased a month later to give companies time to shift production to US soil — but the regulatory back-and-forth has created whiplash in the industry. 'The problem is, no one knows what will happen to tariffs,' Neil Saunders, a retail expert at GlobalData, said. 'The policy has been erratic and remains uncertain.' Carmakers now say the instability is making it nearly impossible to set pricing with confidence. 'It's too early to talk about pricing,' an American CEO, granted anonymity to speak freely, told during this year's New York International Auto Show . 'There isn't enough clarity [about tariffs] to know what we can ask our customers to pay.' So far, manufacturers have responded with modest — but stacking — price bumps. Ford was first to move , raising prices by $2,000 on the Mustang Mach-E, Maverick, and Bronco Sport. All three models all made in Mexico. The company blamed the hikes on mid-cycle design refreshes, not tariffs, though analysts remain skeptical. '[The increase] is based on our most recent evaluation across the industry,' Jeremy Barnes, a spokesperson for the company, told 'There will be no adjustments to vehicles already in dealer inventory.' Previously, Mitsubishi had held back vehicles at US ports while weighing whether to release them to dealers. The flurry of price hikes arrives as Americans are already facing a one-two punch on vehicle affordability. First, the average price of a new car in the US topped $49,000 last month — hovering near record highs. Second, insurance premiums are skyrocketing to match those ballooning sticker prices.
Motor 1
23-06-2025
- Automotive
- Motor 1
Toyota's Prices Are Going Up
In the market for a new Toyota? Better get to the dealership soon. Toyota will begin hiking prices for its vehicles by an average of $270 beginning in July. According to Automotive News , these latest price increases aren't in response to President Trump's 25-percent tariff on imported vehicles and auto parts. A company spokesperson said it's simply "part of our regular review of the prices." Lexus buyers won't be off the hook for additional costs, either. Prices for Toyota's luxury brand are expected to increase by an average of $208 beginning in July. Toyota & Tariffs Even though the company denies that these latest price hikes are in response to tariffs, in May, Toyota Motor North America Chief Operating Officer Mark Templin said that President Trump's plan would result in higher prices and more expensive repair bills. Templin stated: 'When it comes to tariffs on auto parts, it's important to understand the supply chains are global, they're complex, and they're very fragile. And many of the suppliers are not capitalized for an abrupt tariff. So levies on parts will negatively impact the automobile supply chain and lead to higher prices, lower vehicle sales, and will make servicing and repairing vehicles more expensive for customers.' That said, a report from Reuters suggests that Toyota is considering moving production of the newest RAV4 to the US, rather than importing from Canada and Japan. Toyota produced the outgoing RAV4 in Kentucky, Canada, and Japan, but could keep production of the next-generation model in Kentucky. The Toyota RAV4 was the best-selling SUV in the US last year and the fourth best-selling vehicle overall, with more than 475,000 units sold. Car Prices Are Going Up Toyota isn't the only automaker expected to raise prices this year. BMW has announced that it will start hiking prices in July in response to Trump's tariffs, with some models increasing by as much as $2,500. BMW did offer a temporary "price protect" program for the 2 Series and 3 Series models through April. Volkswagen also plans to increase prices in July after announcing pre-tariff pricing through June. The Jetta sedan and Taos SUV, which are both produced in Mexico, are expected to be hit hardest by price increases next month. Other brands like Ford, Subaru, and Volvo have already raised prices on their vehicles—some models by as much as $2,000. More on Tariffs Car Shipments to the US Have Fallen. Guess Why Volvo CEO: Customers Must Pay Tariff Costs, Not Us Get the best news, reviews, columns, and more delivered straight to your inbox, daily. back Sign up For more information, read our Privacy Policy and Terms of Use . Source: Automotive News Share this Story Facebook X LinkedIn Flipboard Reddit WhatsApp E-Mail Got a tip for us? Email: tips@ Join the conversation ( )
Daily Mail
23-06-2025
- Automotive
- Daily Mail
America's favorite automaker is the latest to announce dealer-wide price hikes from Trump's tariffs
Toyota has confirmed it will raise prices on new vehicles starting in July. The average sticker price will climb by $270, while its luxury brand Lexus will tack on an average of $208 per car. The Japanese automaker, which consistently ranks highest in US consumer confidence, has been warning of looming price increases since late May. Facing an expected $1.3 billion tariff bill from the US government, Toyota says it has little choice but to pass some of that cost onto buyers. '[Business is] not sustainable longer term without significant price increases,' Mark Templin, Toyota's chief operating officer for North America, said in a recent event with Ward's Auto. 'And the industry already has an affordability problem.' A company spokesperson did not immediately respond to questions about pricing and tariffs. Toyota is just the latest in a growing list of automakers hiking prices in response to the Trump administration's tariff policy. In March, President Donald Trump slapped a 25 percent tariff on all vehicles and car parts entering the US market. The policy was slightly eased a month later to give companies time to shift production to US soil — but the regulatory back-and-forth has created whiplash in the industry. 'The problem is, no one knows what will happen to tariffs,' Neil Saunders, a retail expert at GlobalData, said. 'The policy has been erratic and remains uncertain.' Carmakers now say the instability is making it nearly impossible to set pricing with confidence. 'It's too early to talk about pricing,' an American CEO, granted anonymity to speak freely, told during this year's New York International Auto Show. 'There isn't enough clarity [about tariffs] to know what we can ask our customers to pay.' So far, manufacturers have responded with modest — but stacking — price bumps. Ford was first to move, raising prices by $2,000 on the Mustang Mach-E, Maverick, and Bronco Sport. All three models all made in Mexico. Toyota's CEO, Koji Sato, has led the company to huge sales heights - the company snatched the crown for world's best-selling automaker Toyota has ranked among the most respected consumer automakers in the US The company blamed the hikes on mid-cycle design refreshes, not tariffs, though analysts remain skeptical. Subaru has also announced price hikes between $750 and $2,055, depending on the trim. BMW is raising the price of its gas-powered 2026 models by 1.9 percent. Mitsubishi Motors said prices will rise by 2.1 percent. '[The increase] is based on our most recent evaluation across the industry,' Jeremy Barnes, a spokesperson for the company, told 'There will be no adjustments to vehicles already in dealer inventory.' Previously, Mitsubishi had held back vehicles at US ports while weighing whether to release them to dealers. The flurry of price hikes arrives as Americans are already facing a one-two punch on vehicle affordability. First, the average price of a new car in the US topped $49,000 last month — hovering near record highs. Second, insurance premiums are skyrocketing to match those ballooning sticker prices. And automakers are feeling the pressure, too. GM says it expects to spend between $4 billion and $5 billion on tariffs this year. Ford projects a bill between $1 billion and $2.5 billion.
