by Toyota prepares to raise prices due to tariffs
Toyota is the next automaker planning to increase prices on its vehicles due to the introduction of additional customs tariffs. The company’s executive director hinted that a significant price hike is inevitable. It is already known that Ford, Subaru, and Ineos have also announced price increases for their products.
As noted by Toyota Motor North America’s Chief Operating Officer Mark Templin:
“Customs tariffs on imported vehicles are not sustainable in the long term without a substantial price increase. They could make new cars unaffordable for many Americans.”
Impact of tariffs on the market
Nearly half of the Toyota vehicles sold in the U.S. are imported from other countries. This includes models such as the 4Runner, Land Cruiser, and GR86. Although the company has a strong manufacturing presence in America (11 plants and nearly 48,000 employees), tariffs could significantly affect its business.
Templin also warns that increased tariffs on auto parts will lead to higher repair costs for both new and used vehicles. This will create additional pressure on consumers who are already facing the issue of car affordability.
Despite the challenging situation, Toyota hopes that the U.S. presidential administration recognizes the consequences of such decisions for the automotive industry and global supply chains. Recent events show that price increases are becoming a trend among major automakers, which could significantly reshape the market in the coming months.
