Lexus, Toyota prices are going up this summer, despite anti-tariff moves
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Thinking of making a move on a new Toyota or Lexus this year? Well, you might want to get on it. Toyota recently announced that prices for its (and its luxury brand, Lexus) vehicles would rise soon. But the reason might be something of a surprise.
Toyota moved production sites for popular models to side-step tariffs, but prices for Toyota and Lexus vehicles are still going up
Prices for Toyota and Lexus vehicles stand to rise soon, and buyers will be footing the bill. Toyota says American buyers will pay more for cars, though the increase is marginal. Toyota says prices for its vehicles in the US market will rise by an average of $270. Lexus vehicles, on the other hand, will hike up an average of $208.
Considering the average cost of a new car in 2025 is $48,000, a $270 increase represents less than a 0.6% increase. The price hikes, mind you, arrive despite the brand’s efforts to shift around the pricey tariff structures. Toyota announced recently that it could move some of its RAV4 production to TMMK in Georgetown, Kentucky. The move would shield Toyota’s best-selling model in the US from President Trump’s 25% tariffs on imported vehicles and parts.
In addition to the efforts to relocate some of the RAV4’s production efforts, Toyota announced that it would start producing the fully-unhinged GR Corolla in the UK to satiate American demand. While the move is practical for other reasons, Toyota could save money if the GR Corollas fit into the 100,000-vehicle group with a reduced, 10% tariff structure under the current Trump executive order.
Toyota claims the modest hikes are ‘part of our regular review of the prices’
Consumers might be quick to place the blame on Trump’s 25% tariffs. But the brand says otherwise. Instead, Toyota spokesperson Nobu Sunage claimed that the hikes are “part of our regular review of the prices,” per Reuters.
The Chief Operating Officer at Toyota’s North American operations did, however, say tariffs will have other adverse impacts on car buyers and current owners. “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,” said Toyota Motor North America COO Mark Templin.
“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,” Templin said.
