- Toyota is set to become the latest automaker to raise prices in response to tariffs.
- In a recent interview, an executive implied “significant price increases” are necessary.
- Ford, Subaru, and Ineos have already announced price hikes and more are expected.
The dam has burst on tariff-related price hikes as Ford recently raised MSRPs on the Maverick, Bronco Sport, and Mustang Mach-E. Subaru will soon follow suit with increases of between $750 and $2,055 due to “current market conditions.”
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Toyota now appears to be signaling they’ll be raising prices too. While this was only a matter of time, officials are now going on the record.
More: Subaru Announces Big Price Hikes, Appears Afraid To Blame Trump’s Tariffs
Speaking with Wards Auto, Toyota Motor North America COO Mark Templin said tariffs on automotive imports are “not sustainable longer term without significant price increases.” He went on to say affordability was already an issue and a 25% tariff on imports “would put a new car out of reach for a lot of Americans.”
Toyota’s U.S. Footprint Is Still Big, But…
Toyota reportedly imports nearly half the vehicles they sell in the United States, which means tariffs are going to have a huge impact. For example, the 4Runner, Crown Signia, Land Cruiser, and GR86 are made in Japan, while the Tacoma comes from Mexico.
Despite this, the automaker has a big presence in the United States. As the company recently noted, Toyota directly employs nearly 48,000 people in America and has 11 manufacturing plants in the country.
Getting back to tariffs, Templin said they’ll harm suppliers, push prices even higher, and lead to a dip in vehicle sales. And don’t even think about cheaper repairs. Higher costs for parts will drive up the prices for fixing cars, new or used.
As Templin puts it, “Levies on parts will negatively impact the automotive supply chain and lead to higher prices, lower vehicle sales, and will make repairing vehicles more expensive for customers.”
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That’s a big problem, but Templin said the company believes the Trump administration “understands the consequences of tariffs on imported vehicles and the fragile nature of the global supply chain.”
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