Car buyers in the US can expect higher vehicle prices due to a 25% tariff on imported vehicles, according to Toyota Texas. The company stated that this tariff would be “highly disruptive” and could not be sustained.
The 25% tariff on imported vehicles will lead to significantly higher prices, erode affordability, and negatively impact the economy, suppliers, and the auto industry, said Toyota’s statement. This comes as President Donald Trump imposed high tariffs on goods from 66 countries, including the European Union, Taiwan, and the Falkland Islands.
The tariffs range from 10% to 50%, with many products subject to a baseline 10% tariff. These tariffs aim to protect US industries by increasing the cost of foreign products and reducing trade openness. As a result, Toyota reported a 37% drop in profits for the April-June quarter, leading it to cut its full-year earnings forecasts largely due to the tariffs.
Source: https://www.ksat.com/news/local/2025/08/07/us-tariffs-take-effect-may-impact-imports-including-auto-companies-such-as-toyota