Toyota and Lexus Raise Prices by Up to $270 on New Cars in Response to Trump's Tariffs

Toyota has officially joined the growing list of Japanese car manufacturers raising prices in response to the US import tariffs under Donald Trump's administration.

The company confirmed that customers in the US can expect price increases on Toyota and Lexus vehicles as early as July, although the automaker has avoided directly blaming the tariffs for the hike.

In May, Toyota Motor North America COO Mark Templin warned that tariffs on automotive imports were 'not sustainable' without resulting in price increases. He noted that affordability had already been an issue for many consumers, even before the additional duties were enforced.

With a 25% tariff on imports, Toyota has little choice but to raise prices, making it more difficult for Americans to afford a new car. The company has now confirmed that prices for both Toyota and Lexus models will increase starting in July.

Toyota and Lexus Prices to Increase in the UK

Toyota confirmed that prices in the UK will rise by an average of £198 ($270), while Lexus models will see an increase of approximately £153 ($208). According to CarBuzz, these increases remain below the average inflation-based adjustments and are significantly lower than projections tied to tariff-related costs.

In comparison, Subaru recently announced far higher price hikes, ranging from £552 ($750) to £1,512 ($2,055). Toyota has yet to specify which models in its UK line-up will be affected.

Delivery and Handling Fees Also Revised

Toyota has also updated its Delivery, Processing, and Handling (DPH) fees for vehicles, with changes set to affect the following classes:

• Large Pickup/SUV: £1,550.30 ($2,095), up by £74.00 ($100)

• Small Pickup (Tacoma): £1,179.30 ($1,595), up by £74.00 ($100)

• Midsize SUV/Van: £1,106.30 ($1,495), up by £33.30 ($45)

• Small SUV: £1,073.00 ($1,450), up by £40.70 ($55)

• Entry SUV (Corolla Cross): £1,073.00 ($1,450), up by £74.00 ($100)

• Passenger Car: £884.30 ($1,195), up by £44.40 ($60)

Toyota said these adjustments are not reactive.

'The pricing and Delivery, Processing and Handling (DPH) adjustments made this week were part of our normal pricing operations,' a company spokesperson said. 'We adjust our pricing structure and DPH fees based on market conditions, vehicle content, and the competitive landscape.'

Toyota's Strategic Position Amid Trade Talks

Industry analysts believe Toyota is exercising caution, given the ongoing trade negotiations between Japan and the US. The company is reportedly considering offering American manufacturers access to its dealership network in Japan and potentially reimporting US-made vehicles to balance trade relations.

Toyota's manufacturing operations in Mexico and Canada also mean it is affected by talks within the United States-Mexico-Canada Agreement (USMCA) region. Analysts suggest that keeping price increases modest is a calculated move to maintain public favour and avoid intensifying diplomatic tensions.

By avoiding a dramatic response to tariffs, Toyota appears focused on market stability and long-term growth, even as external pressures mount.