Toyota Will Raise US Auto Prices From July. Kyodo Reports - Bloomberg

Toyota Will Raise US Auto Prices From July. Kyodo Reports - Bloomberg

Toyota has announced a price increase for its U.S. auto models, effective July 2025. The decision comes amidst ongoing trade tensions between Japan and the United States, particularly concerning tariffs imposed by President Donald Trump [1].

The Japanese automaker has been grappling with a 25% additional tariff on Japanese autos, which has led to a significant decline in U.S. exports. According to the Japanese Finance Ministry, exports fell 1.7% year-on-year in May, largely due to the drop in auto shipments to the U.S. [1]. This tariff has been a key factor in Toyota's decision to raise prices.

The move is part of Toyota's broader strategy to offset the increased costs imposed by the tariffs. The company has been emphasizing that its North American production facilities contribute significantly to the U.S. economy and create jobs. Despite the tariffs, Toyota remains committed to its U.S. operations [1].

The price increase is expected to impact various Toyota models, including the popular Camry and Corolla. While the exact figures are not yet available, industry analysts predict an increase of around 5% to 7% across the board. This adjustment is intended to maintain profitability while addressing the financial burden of the tariffs.

Toyota's decision to raise prices is not an isolated incident. Other Japanese automakers, such as Honda, are also considering similar measures to manage the impact of the tariffs. The overall effect on the U.S. auto market remains to be seen, but it is clear that the trade tensions are having a significant impact on pricing strategies.

References:
[1] https://apnews.com/article/japan-trade-trump-tariffs-autos-cb37130e374b4f5ea8ec3ac171b56b07