Impossible to tell at this point. Many RAV4s are made at the Toyota plant in Kentucky (mine was), but parts and materials (steel, aluminum, plastic) for them come in from all over the world.

 

the whiplash back and forth
makes the short and long term impossible to predict.

 

What tariffs? No sense in getting ahead of the game and reacting to someone stirring the pot. 😉

 

well I guess there are tariffs already in place. I’ll catch up soon. 🤣

 

'No One Is Gonna Buy' Trucks That Cost $20,000 More, Dealer Tells Fox Business - Jalopnik

Ram dealership owner called the impact of Trump's tariffs "traumatic."

www.jalopnik.com

 

Word on the street is on average, prices will increase by $6000 for US customers. Ford F150 pickups will cost an additional $3000 for the extensive amount of aluminum used in it's construction. Even with the 25% tariff the US cannot produce aluminum economically because of high electricity cost and lack of capacity. Smelting aluminum requires a tremendous amount of power. Got a wonder the logic behind these tariffs.

 

Word on the street is on average, prices will increase by $6000 for US customers. Ford F150 pickups will cost an additional $3000 for the extensive amount of aluminum used in it's construction. Even with the 25% tariff the US cannot produce aluminum economically because of high electricity cost and lack of capacity. Smelting aluminum requires a tremendous amount of power. Got a wonder the logic behind this.

I don't think these are actual things that will happen but potential buyers are reading this in the news and are freaking out. Cars are already super expensive including entry-level options like the Rav4, CRV etc. I'm sure they know they cannot make cars more expensive by thousand of dollars and expect to sell them. The goal would be to do everything possible to not raise prices of vehicles in the US by $3000+.

 

Used cars will be inflating as well when people cant afford new ones which is already the case for a lot of people!

 

That is exactly what happened during Covid. Factories were shut down and new cars became scarce, so used car prices skyrocketed.

 

Are we tired of winning yet?

 

Rav4 production in Japan is shutdown due to an explosion that killed an employee.

https://www.thetruthaboutcars.com/cars/news-blog/explosion-kills-one-and-shuts-down-toyota-rav4-part-supplier-s-production-lines-44512507

the Trump tax on imports will be on the whole vehicle from Japan.

parts of the vehicle from overseas will be taxed on value at the docks.

I deal with some of the import duties for one of my hobbies. Some a few cents. Sometimes 50%.

 

I didn't know Japan was letting in Fentanyl or illegals across our border, but if you guys say so...

 

Any answer you get today about tariffs will be different next week (or maybe even as early as 24 hours later).

😂

In all seriousness though it probably isn't possible to know exactly what the impacts to consumers would be until it does or doesn't happen. There are many variables such as how much will Toyota eat/roll into other items or will they just pass a straight tariff hike directly to MSRP. Etc., etc.

🍿

 

I think it really depends on the availability of vehicles impacted by tariffs. For example: If a majority of vehicles of other makes increase by 15-25% in each segment Toyota will likely follow suit. Otherwise toyota is not realizing the perceived gains in the vehicle market, and there would be a massive backlog of vehicle orders due to the price difference.

The used car market will likely follow suit as demand will increase. Capital is like water, it follows the path of least resistance. This might be a blessing in disguise for two reasons. Existing used vehicle prices will rise due to higher demand. And the over inflated prices paid/ financed might be mitigated by higher valuations at trade in time.

So a typical consumer might see some relief if they bought during the pandemic when they look to purchase a new vehicle. Nevermind the fact that the tariffs might inadvertently help prop up new vehicles sales due to consumers not being "underwater" or owing more than the vehicle is worth on their auto loans. This might also help the banking industry as well...

 

My theory is that when the tariffs really go in to effect (if ever) the Canadian RAV4 factories will stay in full production. The new cars will be put on trains going to Vancouver and then onto cargo ships going to Japan. Once docked at a Japanese port all the paper work and invoices for the cars will be done to show they are being officially EXPORTED FROM JAPAN to the US. The cargo ships get re-fueled and turn around and go to Long Beach or L.A. on the West Coast. No tariff on the cars but slight price increase due to transport costs.There is NO TARIFF planned for Japan as far as I know. The Japanese have other ways to retaliate against the US other than a tit for tat trade war. They could shut down US military bases on Okinawa or bar US Navy ships from docking in Japan.

 

Interesting theory avoiding tariffs from Canada or Mexico. It could be as simple as building knock down kits and assemble them in a tariff free country. I don't see any military bases being shut down in Japan, due to concerns with supporting Tiawan and preventing China expansion/ aggression. Tinian Airfield at the moment is being reopened due to these geopolitical concerns.

 

It would seem globaly toyota has had difficulty meeting demand for the rav4 platform. I forsee they will likely continue importing vehicles until they have a profitable plan B to implement. Such as expanding production capability, and subcomponents etc in the United States or a tariff free country.

One of the headwinds that I forsee is the second term of the administration. This means that tariffs could be lifted in four years with a new administration. Along with making it difficult to justify large investments in expanding production capability/ capacity.

The consumer will likely suffer in the interim while these issues are hashed out. Toyota isn't going to maintain their pricepoint on usa mfg vehicles and charge a premium for Mexico or Canada made vehicles. They will likely either average the tarrifs across all the model lines or increase the cost to be on par with their competitors. Either way the consumer will be stuck with a higher price...

 

All this makes me wonder whether there actually WILL BE a NEW 6th generation RAV4 for 2026. Will Toyota be re-tooling the Canadian factories for an entirely new car? Won't that be an excessive cost in light of the new tariffs? Most people simply aren't going to be paying the insane prices for a new design RAV4 with all the first year dealer mark-ups and the tariff premium on top. Seems to me it would be prudent to continue making the 5th generation until this entire mess is resolved.

 

I think the percentage of rav4 sales in the U.S. compared to total global rav4 sales will play a part in the decision making process for the gen 6 roll-out.

 

I have to say the new front end on the preliminary pictures looks pretty ugly with the boomerang over the front headlights. I think the new rav should have a drive train upgrade for efficiency/power and towing, a higher end nicer interior to compete with the Honda crv, minor exterior changes that would be modular with the gen5 rav, possibly more lightweight aluminum panels (doors maybe). I don't think the existing rav is a bad vehicle as it stands, but it's becoming dated compared to Honda, hyundai, kia competition etc. This I think is why they are doing an update. Tariffs might delay the vehicle, but who knows...

 

Imposing tariffs especially on your neighbors, your allies, doesn't make good business sense. Not surprising he's acting foolish as his history of bankruptcy and actions is evidence that he's not a sane decision maker. Tweets at 4am spewing insults, doesn't help his image either.

My feeling is that these threats will force other countries to re focus their trade partner pool and source other options in other countries. This will strengthen other countries though and exclude and weaken the US and their industries and reduce their powerhouse status on the world stage.

What will be for certain, is that the citizens of many countries will bear the burden of higher prices AGAIN. We all thought the covid crisis was bad enough, skyrocketing prices that shocked the whole world, this will be another crisis and financial hit to the people.

PS. Funny how the rich will always benefit the most during a financial crisis? The Cheesie is deliberately causing one.
I wonder if that's the plan to help out himself and his rich acquaintances?

We need vehicles but if we buy less new ones, the price comes down....

 

As I was afraid might happen, the thread has gone off topic from the possible cost of new vehicles under tariffs, to political comments. Please, keep away from politics. Thread closed.