In 2025, new tariffs were announced on certain imported goods, including automotive components and vehicles manufactured outside the United States. These tariffs—essentially taxes on foreign-made products—may affect Toyota prices depending on where the model or its parts are built.

While many Toyota vehicles are proudly assembled in the U.S., others are assembled in Canada, Mexico, Japan, and even Austria. If you’re considering a model produced outside the country, these new tariffs could increase the cost at the dealership. Here’s what you should know before buying.

What Is a Tariff?

A tariff is a tax that the government places on goods imported from other countries, often designed to encourage domestic manufacturing. In the auto industry, tariffs can be imposed on fully assembled vehicles, or on individual parts and raw materials like steel, aluminum, or electronics. Tariffs on parts are expected to be in effect on May 2nd, 2025.

How Tariffs Affect Car Prices.

So, how will tariffs affect Toyota prices in 2025? The answer depends entirely on where your vehicle is assembled. If it’s built outside the U.S., it could be subject to new tariffs, which would likely raise its price. Here’s how that may impact your purchase:

• Higher Manufacturing Costs: Tariffs on steel, aluminum, and electronic parts can increase production costs—even for U.S.-assembled vehicles.
• Market Uncertainty: Fluctuating policies make it difficult to predict pricing trends, creating pressure to buy sooner rather than later.
• Increased Vehicle Prices: Automakers may pass these costs along to consumers.
• Potential for Fewer Discounts: With tighter margins, manufacturers and dealerships may reduce special offers or incentives.

How Will Tariffs Affect Toyota Vehicles?

The impact of tariffs on Toyota vehicles will largely depend on where the vehicle is manufactured. Models built in the U.S. may see minimal pricing changes—unless they rely on imported parts subject to new taxes.

Manufactured in the U.S. (Little to no effect) Camry, Corolla, Corolla Cross, Grand Highlander, Highlander, Sequoia, Sienna, Tunder, or RAV4. Toyota models assembled in Mexico, Canada, Austria, and Japan are likely to be affected by the new tariffs.

How to Get the Best Deal on a Toyota

Even in the face of rising costs, there are still smart strategies to secure the best value on your next Toyota:

• Check for Toyota incentives: Rebates, lease specials, and APR offers may help offset any price increases.
• Buy from an established dealership: Lexington Toyota has a large, diverse inventory to help you find what you need without waiting on imported stock.
• Explore Certified Pre-Owned options: Toyota CPO models offer like-new reliability at lower prices.
• Act now: If further tariff hikes are expected, purchasing sooner could save you money in the long run.