Will You Be Ready for Toyota's July 2025 Price Increases?
Toyota and Lexus Prices to Rise in July
Toyota is increasing the prices of several popular models this July. If you're considering purchasing a new vehicle, it's essential to pay attention to these changes. The automaker has announced average price hikes of $270 for Toyota vehicles and $208 for Lexus models.
According to reports, Toyota attributes these increases to its “regular price review process.” However, the timing of these adjustments may suggest additional factors at play. President Trump’s 25% duties on imported vehicles have been putting pressure on automakers for months, forcing them to make difficult decisions.
Despite Toyota’s substantial U.S. production capacity, which includes nearly 2 million vehicles annually, the company still imports around half a million cars from overseas to meet American demand. These imports now come with added costs due to the tariffs.
The Impact of Tariffs on Automakers
Automakers are faced with a tough choice: absorb the tariff costs themselves or pass them on to customers. Toyota has been trying to balance these expenses, but recent actions indicate that it may not be able to shoulder these costs indefinitely.
Executives from Ford, Stellantis, and General Motors have stated they are in close contact with the White House and have praised officials for listening to their concerns. However, Trump has made it clear that he expects companies to absorb the tariffs rather than raise prices. This expectation can be challenging when billions of dollars are involved.
Toyota sold over 2.3 million vehicles in the U.S. last year. Between April 2024 and March 2025, 1.96 million of those were built domestically, according to Statista data cited by TheStreet. Still, many imported vehicles are affected by steep duties.
Which Models Will Be Affected?
Toyota has not yet confirmed which specific models will see the most significant price hikes. Other automakers are also making similar adjustments. Reuters reports that Ford may raise prices by up to $2,000 on Mexican-built models such as the Mustang Mach-E, Maverick pickup, and Bronco Sport.
TheStreet also notes that Mitsubishi is increasing prices on three models, though the company has not directly attributed the changes to tariffs. Mazda has taken a different approach by stating it would not raise prices on vehicles already on dealer lots or built before May 1. That grace period has now ended, and future pricing remains unclear.
What to Do If You Want to Buy a Toyota
If you’ve been waiting to purchase a Toyota, the window for pre-increase prices is closing. Toyota’s higher rates are coming soon, so it's advisable to check with dealers about current inventory and when the changes will take effect.
If the price increase makes your top choice unaffordable, consider U.S.-assembled alternatives. While many still use imported parts, price increases may be smaller for now. Don’t rush into the wrong vehicle just to save a few hundred dollars. Dealers may be open to negotiating on in-stock models they want to move before the hike.
Watch for promotions, such as rebates or limited-time discounts, that can help offset rising prices. If you’re comparing financing options, My Auto Loan makes it easy to view offers from multiple lenders with a single application.
Navigating the Changing Landscape
Tariffs are quickly reshaping automaker strategies. Toyota’s move may not mention duties outright, but the pressure is evident. Thoughtful shoppers can still find ways to limit the impact.
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