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.