The Trump administration’s tariff policies have led to increased import costs, prompting several automakers, including Toyota, to raise prices for consumers. Toyota is the latest to join the list, with its executive implying “significant price increases” are necessary due to tariffs on automotive imports. This comes after Ford, Subaru, and Ineos have already announced price hikes, with more expected to follow.
Toyota Motor North America COO Mark Templin stated that tariffs are “not sustainable longer term without significant price increases.” He noted that affordability is already an issue and a 25% tariff on imports would make new cars unaffordable for many Americans. Toyota imports nearly half of the vehicles it sells in the United States, which means tariffs will have a significant impact on the company. The affected models include the 4Runner, Crown Signia, Land Cruiser, and GR86, which are made in Japan, and the Tacoma, which is made in Mexico.
Despite the challenges, Toyota has a significant presence in the United States, with nearly 48,000 employees and 11 manufacturing plants. However, Templin warned that tariffs will harm suppliers, drive up prices, and lead to a decline in vehicle sales. Additionally, the higher costs of parts will make repairs more expensive for customers. Templin noted that the company believes the Trump administration understands the consequences of tariffs on imported vehicles and the fragile nature of the global supply chain.
The price hikes are expected to be substantial, with Subaru announcing increases of between $750 and $2,055 due to “current market conditions.” Ford has also raised prices on several models, including the Maverick, Bronco Sport, and Mustang Mach-E. The tariffs are having a ripple effect on the automotive industry, with suppliers and consumers alike feeling the impact. As the situation continues to unfold, it remains to be seen how the Trump administration will address the concerns of the automotive industry and the impact of tariffs on American consumers.