Starting July 2025, both Toyota and its luxury brand Lexus will implement price hikes across their vehicle lineups. The increase follows industry-wide pricing pressures but remains more conservative than some competitors.
Toyota vehicles will see an average price increase of $270, while Lexus models will rise by an average of $208.
According to Automotive News, Toyota has framed this as a result of “regular price reviews,” industry watchers point to new tariffs as a significant factor.
The U.S. government recently imposed a 25% tariff on imported vehicles and auto parts, contributing to cost increases across the board.
Automakers are responding differently: BMW, for example, is raising prices by as much as $2,500 on certain models, while Volkswagen is adjusting pricing on its Mexico-made Jetta and Taos. Ford, Subaru, and Volvo have already implemented increases of up to $2,000.
Toyota’s restrained pricing strategy may be due to its strong U.S. manufacturing presence. Popular models like the Camry, Highlander, Sequoia, and Tundra are built domestically, helping shield them from the brunt of import tariffs.
However, models such as the Prius, Tacoma, 4Runner, and most Lexus vehicles—excluding the TX and ES—are still imported, making them more vulnerable to international trade changes.
Looking ahead, Toyota is reportedly planning to shift production of the next-generation RAV4 to its Kentucky facility.
Currently sourced from Canada and Japan, the RAV4 is the best-selling SUV in the United States. Local production could offer price stability for this high-demand vehicle in the face of tariff-driven cost increases.
For prospective car buyers, this means timing is critical. Those considering a new Toyota or Lexus may want to finalize purchases before the July price adjustments take effect. Buying from current inventories, which may not yet include the revised pricing, could result in notable savings.
Understanding the origin of specific models is also essential. Cars with a high percentage of imported components are more likely to see steeper price hikes. With the auto market in flux, consumers should stay informed and act promptly to avoid paying more later.