How 25% Trump Tariffs Will Affect Toyota

• A new 25 percent tariff will be applied to all vehicles and auto parts imported into the United States from any country
• Toyota makes the Sienna, Camry, Corolla, Corolla Cross, Sequoia, Grand Highlander, Highlander, Tundra, and Camry in the United States.
• Every 2025 model sold in the U.S. gets some of its parts from outside the country

25% Trump Tariffs

Since going back and forth on subjecting all goods (including cars and car parts) from Canada and Mexico to 25 percent tariffs, the White House has just recently announced a new 25 percent tariff will be applied to all vehicles and auto parts imported into the United States from any country. Although this potential change from these tariffs will increase domestic auto production, the truth is that new factories take years of planning to build and cost billions of dollars.

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Almost half of all cars sold in the United States each year are imported and close to 60% of car parts are imported before being assembled in the U.S. These new tariffs will give much larger price tags to consumers for the same product. Most imports come from Mexico and Canada, with some covered under the United States-Mexico-Canada Agreement (USMCA) that was signed in 2019. According to the Department of Transportation’s American Automobile Labeling Act data, every 2025 model sold in the U.S. gets at least 15 percent of its parts from outside the country.

Toyota builds the Camry, Corolla, Corolla Cross, Grand Highlander, Highlander, Sequoia, Sienna, and Tundra in the United States. There are a handful of Toyota vehicles that are built outside of the U.S., including the Toyota Tacoma which is built in Mexico, and the Supra is built in Austria. Production for the Toyota RAV4 is split between the U.S., Canada, and Japan. The rest of Toyota’s lineup is built in Japan.