Toyota To Increase US Vehicle Prices By Over $200 Starting July Amid Trump's Auto Tariffs: Report

Toyota Motor Corp. TM will implement a price hike on certain vehicles sold in the United States by more than $200 beginning next month.

What Happened: Some models under the Toyota and Lexus brands will see price increases averaging $270 and $208, respectively, as stated by Nobu Sunaga, a spokesperson for the Japanese automaker, according to a Bloomberg report on Saturday.

This adjustment is part of a routine review, with new prices determined by factors such as market conditions and competition, Sunaga explained in an email.

The price revision follows Mitsubishi Motors Corp.‘s recent announcement of increased US prices for three models, also citing regular adjustments to account for inflation.

Japanese automakers, including Toyota, heavily depend on imports to supply the US market and have been dealing with the impact of tariffs on imported cars and parts imposed by President Donald Trump.

Why It Matters: The decision by Toyota to raise prices comes amid a backdrop of increasing tariffs affecting the automotive industry. President Donald Trump has implemented a 50% tariff on steel imports, which has significantly increased production costs for automakers in the U.S., potentially adding nearly $2,000 to the cost of each vehicle.

Additionally, Ford Motor Co. F recently announced price hikes for some of its Mexico-produced vehicles, citing auto tariff uncertainty. This trend reflects the broader industry response to the tariffs, which have been a significant factor in the pricing strategies of automakers.

Furthermore, President Trump has hinted at the possibility of further increasing auto tariffs to encourage domestic production.

These tariffs could potentially raise imported car prices by up to $15,000, according to Goldman Sachs.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

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