Toyota Jacks Up Prices, Blames Tariffs

Even though Toyota executives admit there’s a lot they don’t know about tariffs, one thing is for certain: prices for cars and parts will increase. That common theme has been running throughout the auto industry, with rare exception, as consumers are already squeezed after a decade of prices climbing rapidly.

In the meantime, Ford says Mach-E prices won’t increase despite tariffs.

In the case of Toyota, the announcement is an odd one. After all, a number of its model lines are made in the US. The automaker has 11 assembly plants here, yet from the sound of a report from MotorTrend, anyone wanting to buy a new vehicle or get components from the manufacturer should expect to pay significantly more.

Maybe executives are just preparing everyone for the worst while hoping they can deliver better results. Or maybe President Trump’s tariffs have become a great excuse for automakers and other companies to jack up prices again.

During covid, car prices skyrocketed and we were told it was due to parts shortages and other pandemic-related factors. The funny thing is now that’s well in the rearview mirror, we haven’t seen many price cuts.

Case in point: the base 2015 Toyota Camry had an MSRP of $22,970. Anyone opting for the top-of-the-line XLE would be facing a $35,000 MSRP. Fast forward to 2020 and the base model started at $25,420 and the top trim was $36,125.

A 2025 Camry has a base MSRP of $29,795, essentially doubling the 5-year price increase we saw between 2015 and 2020. At least the top trim hasn’t edged up there at $36,035, so that’s nice.

We’ve seen this sort of thing with other models, both from Toyota and other brands. As we’ve pointed out repeatedly, when prices ran up during covid and dealers were gouging for thousands beyond the inflated MSRPs, there wasn’t much of a fuss.

As this tariff battle continues, it becomes increasingly confusing with deals and changed deadlines and so on. One thing that’s clear is automakers will take advantage and lenders will help by offering longer loan terms, keeping those monthly payments down even as people pay more than ever for the new luxury truck or whatever they think they would die without.

We’re just wondering what the next scapegoat for price increases will be in two or three years?

Image via Toyota