Toyota: Cars and Repairs Will Cost More Because of Tariffs
Toyota executives say Trump’s tax is not sustainable without price hikes.
Alisa PriddleWriterManufacturerPhotographerMay 22, 2025
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Toyota is in a wait-and-see mode when it comes to tariffs and production decisions. But whatever happens, it will cost more to buy and repair vehicles, executives say.
Toyota has 14 plants in North America, 11 of them in the U.S. But half the vehicles Toyota sells in the U.S. are imported and being subject to a 25-percent tariff, a reality that is not sustainable without price increases, putting a purchase out of reach for many, said Mark Templin, executive vice president and chief operating officer of Toyota Motor North America.
Nor are suppliers capitalized for the increased cost of parts subject to tariffs. The overall result will be higher prices, lower sales, and more costly repairs, affecting the health of the auto industry that contributes $1.2 trillion to the GDP, Templin said at an event in Plano, Texas. “New cars would be out of reach for a lot more Americans.”
Toyota thinks the Trump Administration understands this and Templin expects trade deals to mitigate tariffs while contributing to more vehicles being built in the U.S.
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No Sudden Movement
Toyota’s tactic? Stay calm and focused on the customer. “Our thinking is long term,” Templin said. “You can’t move production overnight.”
But the tariff will force Toyota to take a second look at where it builds each model, said David Christ, general manager of the Toyota Division.
“Wherever the tariff lands, it will force a re-evaluation of where we build everything,” Christ tells MotorTrend. “That’s something we do naturally, but probably we have to do it again when we have the full view of the tariffs.”
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A Ton of New Vehicles on Tap From Toyota
Toyota has 24 new or updated models coming for the Toyota, Lexus, and GR brands, most of them electrified. That includes the new 2026 Toyota bZ electric crossover, the 2026 bZ Woodland which is its larger sister model, and the new 2026 Toyota C-HR, a third battery electric vehicle. Lexus has three new models coming, including the eighth-generation ES sedan and the bZ’s luxurious sibling, the Lexus RZ, with a choice of three powertrains.
Also on tap: an all-new 2026 RAV4. The current RAV4 is made in Canada, the U.S., and Japan. The company is not changing the mix of which version it sells in the U.S. based on where it is made and will continue to steer customers to the right model for their needs, regardless of where it is built, said Mike Tripp, group vice president of Toyota marketing.
The Japanese automaker has made huge investments across North America under a series of trade deals and will stay the course for now. So far, Toyota has not made any long-term decisions on what is produced where, Christ said.
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Marketing Message
On the marketing side, Toyota is not changing its message or strategy, Tripp said. This is a moment in time and until new rules are made, the company is not overreacting. It helps that marketing messages largely plant ideas for a future purchase. “It’s not for today’s sale, it is for longer term consideration.”
When the tariffs were first announced, Toyota assessed its messaging and which vehicles it should display at auto shows in case tactics needed to be adjusted but no such decisions have had to be made, Tripp says. For example, Toyota continues to advertise the new 4Runner even though it is made in Japan.
Alisa Priddle
Alisa Priddle joined MotorTrend in 2016 as the Detroit Editor. A Canadian, she received her Bachelor of Journalism degree from Carleton University in Ottawa, Ontario, and has been a reporter for 40 years, most of it covering the auto industry because there is no more fascinating arena to cover. It has it all: the vehicles, the people, the plants, the competition, the drama. Alisa has had a wonderfully varied work history as a reporter for four daily newspapers including the Detroit Free Press where she was auto editor, and the Detroit News where she covered the GM and Chrysler bankruptcies, as well as auto trade publication Wards, and two enthusiast magazines: Car & Driver and now MotorTrend. At MotorTrend Alisa is a judge for the MotorTrend Car, Truck, SUV and Person of the Year. She loves seeing a new model for the first time, driving it for the first time, and grilling executives for the stories behind them. In her spare time, she loves to swim, boat, sauna, and then jump into a cold lake or pile of snow.
