Toyota Crown Forum banner
  • Why The Toyota Crown is Such a Big Deal Watch Here

Tariffs on cars will raise prices

15K views 135 replies 50 participants last post by  Smyrna  
#1 ·
The 25% Trump tariffs on cars imported into the U.S. will not only increase the prices of those cars but may cause models like the Crown Signia to disappear from the American market. Since the Signia is made in Japan, a 25% tariff could not be absorbed by Toyota or the dealers so I would expect Toyota to stop exporting them and sell them in other markets. So if you were thinking of buying one, might be best to grab one now because the Signia could become one of the rarest Toyotas ever sold in the U.S. market.
 
#6 ·
Gotta give the American people what they wanted. That is what he is doing. They voted for things like this and he was clear about doing it before hand. They still proceeded with said vote by the majority. I think it’s hilarious how it’s all back firing as we know it would and people are crying now. Reap what you sow. 🤷🏼‍♂️ Good times with him bringing in a recession in as well around the corner in less than 6 months. Winning! 😆 Politicians are for themselves and elite pals around the world. People just don’t get that and in denial like he really cares about them. 😆 Delete my comment mods if this is pushing to political or pushing towards it if you think causing arguments. No offense taken! Glad I recently got my new 25 Crown Platinum in time!
 
#3 ·
My wife and I anticipated this in December; it was a primary driver in our decision to buy our CS in January. Couldn't be happier. Although I'm extremely disgusted and distressed by the insanity in the White House. One consideration has occurred me as a possibility: if they withdraw the vehicle from the US market, getting parts could be tricky although I am aware this car uses quite a few parts shared with other models. We'll see.
 
#5 ·
Anticipating the tariffs that were planned to go into effect on 4/2, my wife and I began shopping 3 weeks ago with the goal of buying a car to replace our 2000 VW Passat before 3/31. We considered Toyota, Lexus, Subaru and BMW. After 13 dealer visits and numerous test drives, we bought a Crown Signia this past Tuesday. And we were so very thankful we did when the news of the 25% tariff hit the following day. We're excited to pick it up tomorrow.
 
#7 ·
Lot's of bad information in this topic already. Japan has a 2.5% tariff imposed on vehicles sold into the USA. The reason it's so low is that we are close to an equitable / balanced tariff situation with Japan. They brought in ~$40 Billion dollars and about 28% of all imports into the USA.

The countries abusing us are Canada, Mexico, (NAFTA anyone?) and China.

No reasonable business would destroy a brand or model by allocating the entire 25% tariff to each specific model affected, they would instead calculate the over all cost to all the vehicles, and impose say a 2% increase on all models sold in the dealerships.

Say what you will but the current administration (and just over 1/2 the countries voters as of last November) but their goals are correct, bring manufacturing plants and jobs back to the USA, and it is already working, only 60 days into the term.
 
#12 ·
Lot's of bad information in this topic already. Japan has a 2.5% tariff imposed on vehicles sold into the USA. The reason it's so low is that we are close to an equitable / balanced tariff situation with Japan. They brought in ~$40 Billion dollars and about 28% of all imports into the USA.

The countries abusing us are Canada, Mexico, (NAFTA anyone?) and China.

No reasonable business would destroy a brand or model by allocating the entire 25% tariff to each specific model affected, they would instead calculate the over all cost to all the vehicles, and impose say a 2% increase on all models sold in the dealerships.

Say what you will but the current administration (and just over 1/2 the countries voters as of last November) but their goals are correct, bring manufacturing plants and jobs back to the USA, and it is already working, only 60 days into the term.
You really don't have a clue .
 
This post has been deleted
#16 ·
Actually, only about 76% of Toyota's sales in North America are produced in the US, Canada or Mexico according to Toyota's 2023 sales figures. If the remaining 24% are tariffed at 25%, Toyota might try to spread that additional cost over the remaining models but the end result is higher prices for cars. And it won't just be for imported cars, domestic manufacturer prices will also go up because there is no such thing as a 100% made in the USA car... virtually all cars have components that were made elsewhere. Welcome to carflation!
 
#21 ·
Has anyone heard from their dealer about how Toyota is going to handle tariffs on cars coming from Japan? Actual information from Toyota, not the typical salesperson “it will be fine”?

I have a CS that has already been built, is on a boat, due to arrive at the port on 4/11 and be released from the port on 4/24, dates after Trump’s 4/2 tariff deadline.

Is Toyota immediately raising prices on 4/3, and if so by how much (is the CS absorbing the whole 25% tariff, or are all Toyota models going up to cover the tariffs on other J-VIN vehicles)? Is Toyota holding prices for all currently built vehicles, and increasing pricing for vehicles that have yet to be built yet?

My dealer hasn’t contacted me to let me know if they’ve heard anything, but I’m curious if anybody else had heard any kind of official word from Toyota on this.
 
#24 ·
As far as educating myself, here's a recent interview with Shawn Fain UAW President (the head of the United Auto Workers Union):

MAJOR GARRETT: Let's get back to tariffs and the auto industry. Peter Navarro, a top adviser to the president on trade, says that currently, automobile manufacturing plants are at about 60% capacity. He argues that there's lots of untapped capacity, meaning jobs could be created relatively easy, and you wouldn't need to spend two or three or maybe five years building new factories. Is that your understanding? Is that your belief?

SHAWN FAIN: He's spot on. Look, we have a situation right now in Warren, Michigan, where 2,000 workers were laid off this past year. They built the Ram truck there for years under Stellantis, and Stellantis made a decision to shift that production to Mexico. They could shift that work back in very short order and be producing Ram trucks right back there and put those people back to work.

I was just at Volkswagen this week, you know, talking with workers down there that are trying to get their first contract, and the company announced a reduction of a shift. Meanwhile, you know, Volkswagen is the biggest violator of all. 75% of their production for the North American market is made in Mexico, so they can shift product there overnight. There's excess capacity.

You know, people forget this lesson in World War II. The way that we formed the Arsenal of Democracy that won the war was, they took the excess capacity of all the automotive manufacturing plants in the country, and produced tanks and planes and bombs and engines and all those things. And it's no different right now.

We have excess capacity. They could bring work back in very short order. And yes, they're in a situation where they need to build a new plant, yeah, that's going to take a couple years, but- but there is plenty of opportunity for these companies to do the right thing and bring work back here overnight, just as quick as they shifted out of here.

MAJOR GARRETT: And Shawn, for people who are listening to you, how do tariffs make that happen? What is the relationship between a 20 or 25% tariff and getting that capacity back up to where you'd like to see it?

SHAWN FAIN: Well, because, like everything, the companies abuse the process. I mean, they're in the pursuit of driving a race to the bottom. I mean, the tariffs are -- you know, there was a major promise when NAFTA happened in 1992, the big debate, and Ross Perot talked about the "giant sucking sound," that our manufacturing base was going to disappear. He was spot on, you know.

And we saw what happened in the ensuing 30 years. We saw 90,000 plants leave. You know, like I said, we've seen 65 plants in the Big Three close. Look, right now, as we speak, in Wisconsin, we have a Deere plant threatening to be closed, and their work being threatened to go to Mexico. We have a heavy truck plant at Volvo, and Mack Truck in Pennsylvania being threatened to be taken to Mexico. There is plenty of opportunity, and that's the reality that we've seen here in America.

So, tariffs are a tool in the toolbox. They're not the end all solution. We have to fix the broken trade system. But the way tariffs work, I mean, it's a motivator, because there's going to be a penalty for everything the companies ship in here, and I've had companies tell us, point blank, that they're going to have to bring product back here if those tariffs are implemented.
 
#26 ·
I don't want to be political and will simply state what many countries have learned over the years. Tariffs rarely achieve the stated goals and usually end up with many unintended consequences.
See what economists, those with PhD's, say about tariffs. They actually know more about this than most people on TV.
And, as I said earlier, I have no idea if, or how, Toyota will change pricing on its vehicles
 
#31 ·
Correct. The Smoot-Hawley Act of 1930 put tariffs of about 20% on many imported goods. The intent being well intentioned but the result drove the recession into the Great Depression with unintentional results and lengthened the depression. Peaceful protests in 1932 by veterans resulted in President Hoover and McArthur using the Army against the veterans. We surely don't want that happening again. Be respectful, be cautious.
 
#30 ·
I drive past my local Toyota dealership on my way to work. After this past weekend, the lot looks noticeably thinner than it did last week.

I also saw a post on the car sales subreddit page where people were talking about month-end, and a number of people said their stores were significantly busier than normal, with people trying to get a car before the tariffs go in to effect.

Still no word from my dealer about my CS that’s due to arrive at port on 4/11 and be shipped to the dealer on 4/24, but Toyota’s official announcement about not raising prices for now has me optimistic that the pricing I agreed to with the dealership will hold.
 
#32 ·
I didn’t get CS, and I got Crown platinum. I stopped at Toyota dealer last October(before election), and I signed paper that day. But dealer didn’t have platinum trim with the color I wanted. So I had to wait until dealer can secure it, because Toyota would not take custom order. I had back and forth communication for four months about my car. And I finally got mine in February. At that time, dealer told me that Toyota started raising base price of Crown. And it was $3k more than last October. Like it or not, tariff will drive price to higher. And Customer will pay for it.
 
#33 ·
The reality is that the US government is well on it's way to default. Blaming the current administration is nonsense, based on feelings, not facts. Anyone who watched the interview with the DOGE team and has a grasp on reality will quickly realize that a MAJOR set of course corrections is required to right the ship. The reality is that the US has off shored manufacturing for decades, and COVID exposed the real-world shortfalls with these policies. The truth is that the US absolutely needs to restore its manufacturing capabilities. People who understand the tariff issue realize that the steps being taken to address the trade/manufacturing deficits will only help the US in the long term, increase jobs, manufacturing, and the reduce the deficit. I remember when Michigan had heaps of tool and die shops, and manufacturing was strong. The 70's saw a decline in quality from the US car makers, along with the shift of manufacturing off shore. The reality is the US needs to start making things in the US, and the US car manufactures need to fix their quality control issues. The tariffs are a negotiation process, which will help the US in the long run.
As for me, I bought the Crown because it fits my needs well, and has excellent reliability. The US car makers have nothing to compare. Toyota has been making plans to increase manufacturing in the US, which should be considered a win.
 
#36 ·
I guess people need to accept what is the long run? 5, 10, 15 years? I don't blame any administration as it is all of the above. Companies today look for short term results which in most cases is 1 to 2 years. Short term should be 5 to 7 years or longer. I worked in manufacturing my whole career after my military service. Companies always look for ways to increase profits whether it may be materials or labor costs. Companies use materials and labor from the whole planet which is global economics. As I said before tariffs done correctly have positive results for everyone. Protectionism tariffs hurt everyone. Time will tell.
 
#34 ·
My .02

With the loss of the Avalon replaced by the Crown Sedan and Crown Signia Crossover means that they are now Toyota's top trim level in non-SUV/Truck line. So, not likely to be discontinued....small coincidence they are manufactured only in Japan where they wish to maintain their great rep of highest quality.

Been there before. Gas shortages increased the number of imported Japanese compacts and starved gas guzzling US production sales. In response US capped numbers of imports on foreign manufacturers the U.S. manufacturers instantly boosted car prices across the board. In response the Japanese doubled the number of their manufacturers by introducing corporate twins Toyota- Lexus, Honda-Acura and doubled their sales and targeted the higher end US production makes at the same time.

The end result is foreign manufacturers are not stupid and since there is not a single US brand made wholly of US parts.....all they have to do is starve US firms of raw material/replacements parts, charge exorbitant rates for parts and/or slow shipment claiming that they have to prioritize their own production sales to non US countries. And as usual, economist's $hit will backfire......once your car is held up laid up in the shop waiting 4 months for overpriced engine/computer parts or transmission you'll gladly pay an extra 25% for a driveable car with available/cheaper replacement parts. We've seen this before with the "Chip Shortage" where mysteriously Toyota had the chips and sales skyrocketed against US production of uncompleted cars, some in dealer's lots, laid up waiting for foreign parts to arrive.
 
#38 ·
In this post, I make a distinction between Toyota the manufacturer and Toyota dealers.

Perhaps we’ll see some unintended consequences:

Perhaps dealers will cease and desist $3,500 “Market Adjustment” (or 8% markup over invoice)

Perhaps dealer margins will be reduced. Local dealers of almost every brand are filthy rich.

Perhaps expensive options will not be forced on the buyer (tow hitch, illuminated this and that) or even “decontent” the vehicle to reduce manufacturing cost….it’s been done in the past to increase profits.

Perhaps dealers will C&D attempts at $10,000-$20,000 profit margins per sale (i.e. low ball trade in) I gave up trading 2023 Crown Limited sedan (1,700 miles) for Signia after lowball trade-in amounted to my Crown and $22,000 cash plus $5,000 CA taxes/fees.

Benz dealer margin in the seventies was 20%. It was reduced to 6%. Dealers still flourished. Maybe from their outrageous service department charges. Toyota could absorb some of the 25% and make it back in the service department.

Perhaps the automobile’s 13-year lifetime monthly Connected Service charges $15-$50 (lifetime $2,340 to $7,800) will be reduced or eliminated. With over 11 million worldwide sales (2.4 million USA) that is a hefty multi-billion-dollar annual cash flow steam. Your Tesla neighbor pays $99 a month for the privilege of using Auto-Pilot, which is turned on/off remotely by Tesla. Almost $12,000 over ten years.

MSRP will not be increased 25%. Dealer profit with Hold Back is likely 15% on $50,000 MSRP. So 25% might be added o to $42,500 invoice, still a lot of money.

Eventually, perhaps all of Toyotas and other brands will be incentivized to build plants in USA.

To dklanaeky’s point: the dealers would likely spread to new cost over all models they sell and Toyota would build more plants in USA.

To w4yn and jeffok7s point: Toyota spreads the pain over models made in the USA.

The real bonanza will be the value of your USED 2023-2024-2025 Crown. The uber-bonanza will be keeping your Crown for 10-13 years.

Some manufacturers make a spare tire a $350 option. That would bring in a few buyers. Point; now it’s a seller’s market for Signia. The tariffs may change it to a buyer’s market.

When faced with new laws, rules, procedures, tariffs; what the first thing that happens? Those affected find ways to “game” the system. e.g., Creative leases could save thousands in CA tax/fees.

Perhaps dealer offered 1.99% loans will become a permanent fixture. That works out to $50 a month lower payment on a $45,000 60-month loan vs 6%.

Let the good times roll.
 
#39 ·
In this post, I make a distinction between Toyota the manufacturer and Toyota dealers.

Perhaps we’ll see some unintended consequences:

Perhaps dealers will cease and desist $3,500 “Market Adjustment” (or 8% markup over invoice)

Perhaps dealer margins will be reduced. Local dealers of almost every brand are filthy rich.

Perhaps expensive options will not be forced on the buyer (tow hitch, illuminated this and that) or even “decontent” the vehicle to reduce manufacturing cost….it’s been done in the past to increase profits.

Perhaps dealers will C&D attempts at $10,000-$20,000 profit margins per sale (i.e. low ball trade in) I gave up trading 2023 Crown Limited sedan (1,700 miles) for Signia after lowball trade-in amounted to my Crown and $22,000 cash plus $5,000 CA taxes/fees.

Benz dealer margin in the seventies was 20%. It was reduced to 6%. Dealers still flourished. Maybe from their outrageous service department charges. Toyota could absorb some of the 25% and make it back in the service department.

Perhaps the automobile’s 13-year lifetime monthly Connected Service charges $15-$50 (lifetime $2,340 to $7,800) will be reduced or eliminated. With over 11 million worldwide sales (2.4 million USA) that is a hefty multi-billion-dollar annual cash flow steam. Your Tesla neighbor pays $99 a month for the privilege of using Auto-Pilot, which is turned on/off remotely by Tesla. Almost $12,000 over ten years.

MSRP will not be increased 25%. Dealer profit with Hold Back is likely 15% on $50,000 MSRP. So 25% might be added o to $42,500 invoice, still a lot of money.

Eventually, perhaps all of Toyotas and other brands will be incentivized to build plants in USA.

To dklanaeky’s point: the dealers would likely spread to new cost over all models they sell and Toyota would build more plants in USA.

To w4yn and jeffok7s point: Toyota spreads the pain over models made in the USA.

The real bonanza will be the value of your USED 2023-2024-2025 Crown. The uber-bonanza will be keeping your Crown for 10-13 years.

Some manufacturers make a spare tire a $350 option. That would bring in a few buyers. Point; now it’s a seller’s market for Signia. The tariffs may change it to a buyer’s market.

When faced with new laws, rules, procedures, tariffs; what the first thing that happens? Those affected find ways to “game” the system. e.g., Creative leases could save thousands in CA tax/fees.

Perhaps dealer offered 1.99% loans will become a permanent fixture. That works out to $50 a month lower payment on a $45,000 60-month loan vs 6%.

Let the good times roll.
 
#48 ·
What was to be my Crown arrived in Long Beach California today. My dealer has not been able to tell me if the tariffs will apply or not. If they do I’m out, I’m not going to pay 25% extra. I’ll hold on to my Avalon for a bit longer. There are no American car brands that I would want to own. Look at Toyota dependability verses the US auto makers. It’s not like we want to buy a car from Japan because it’s cool, they are just made better and the facts do not lie. I am sure in will get some ignorant hateful responses but the information is readily available.
 
#49 ·
I think costs will go up as even the raw materials are being tariffed. So maybe fewer people can afford a car so they export it... but there's likely a counter tariff on the car, so Toyota will just make fewer cars in the usa.

I find it beyond ironic that people are supporting tariffs on a web site for folks to talk about their imported Toyotas. I suppose it is very patriotic to want to pay more tax to import a luxury good in a way. I hope the additional tax revenue will be put to good use to subsidize the big 3.