Another round of price hikes for Toyota and Lexus
Starting in July, Toyota plans to raise prices across its lineup by an average of $270. Lexus, the company’s luxury arm, will see slightly lower hikes of about $208. That’s according to reports from Reuters and Automotive News, which note that Toyota is following other major automakers in nudging sticker prices upward this summer.
A company spokesperson says the move is “part of our regular review of the prices.” But there’s a bigger context behind these small-sounding increases—and it’s one that Toyota, like several other companies, appears reluctant to talk about directly.
Everyone’s thinking tariffs, but no one’s saying it
The elephant in the showroom is President Donald Trump’s 25% tariff on imported vehicles and auto parts. Although Toyota denies any link between the new price hikes and the proposed levies, the company’s own executives have previously warned about the potential impact.
Toyota
In May, Toyota Motor North America COO Mark Templin stated that tariffs would ripple across the entire supply chain, increasing costs for parts, new vehicles, and even repairs. “Levies on parts will negatively impact the automobile supply chain and lead to higher prices,” Templin said.
Other automakers have been more explicit. BMW and Volkswagen are planning price increases in July and have directly linked those hikes to the tariffs. BMW even offered temporary “price protection” on some models through the spring. Subaru, Ford, and Volvo have already raised prices on certain models—some by as much as $2,000.
Lexus
So why isn’t Toyota pointing fingers? One possibility: political pressure. Retail giants like Walmart and Amazon previously faced backlash from Trump after linking price increases to tariffs. Companies may now be treading carefully to avoid being publicly called out.
Production shifts and the future of the RAV4
There are signs that Toyota may be planning to reduce its exposure to overseas manufacturing. The company is reportedly considering moving more RAV4 production to the U.S. Currently, the RAV4 is built in Kentucky, Canada, and Japan, but keeping the next-gen model in Kentucky could help Toyota avoid potential tariff-related costs.
Toyota
That’s not a small decision. The RAV4 is Toyota’s best-selling vehicle in the U.S. and was the fourth-best-selling vehicle overall in 2024, with more than 475,000 units sold.
Final thoughts
For buyers considering a new Toyota or Lexus, the message is clear: move quickly if you want to avoid the next round of price increases. While a $270 hike might not break the bank, it adds to a trend of steadily rising vehicle prices across the industry, and there’s no guarantee this will be the last bump. The price of admission is going up, but automakers aren’t in a hurry to spell out why.