Toyota is the latest car maker with plans to raise vehicle prices in the US. The price hikes apply to Toyota and Lexus-branded models built from July 1. Here’s how much more you can expect to pay.
Why is Toyota raising vehicle prices in the US?
If you were planning on buying that brand-new Toyota, you might want to get on it. Starting next month, the average cost of a new Toyota will increase by $208. Lexus brand vehicle prices are going up by $208 on average.
Toyota is the latest in a string of automakers to announce it’s planning to raise US vehicle prices, including Subaru, Ford, and Mitsubishi.
Although most automakers cited the Trump administration’s new auto tariffs as a reason for the price hikes, a Toyota representative said that “the tariffs were not a direct factor.”
Toyota claims that the price adjustments are based on market trends. According to the spokesperson (via Nikkei), “In addition to a vehicle’s quality and customer appeal, prices are determined based on market trends and the stance of competitors.”
Like many carmakers, Toyota adjusts prices annually. Although the tariffs may not have been “a direct factor,” they were still likely a big part of the decision.
Toyota’s imported vehicles account for about 45% of its US sales. The company imports about 500,000 cars to the US each year from Japan. It also imports vehicles from its plants in Mexico and Canada, which also face higher tariffs.
Last week, the Japanese automaker raised delivery, processing, and handling fees on Toyota models by $71 and $108 for Lexus-branded models.
Toyota didn’t specify which vehicles were included, but we will find out soon, as the price hikes are set to take effect on vehicles produced from July 1.
In May, a Ford spokesperson confirmed to Electrek that the company planned to increase prices on the Mustang Mach-E, Maverick pickup, and Bronco Sport, all of which are manufactured at its plant in Mexico. The higher prices went into effect on imported cars after May 2.
According to the spokesperson, the move is part of the company’s “usual mid-year pricing actions combined with some tariffs we are facing.”
Other Japanese automakers, including Nissan and Honda, have not raised vehicle prices. Hyundai Motor Group, which includes Kia and Genesis, is ramping up US production to avoid potential price hikes.
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