Toyota is in “Wait-and-See Mode” as far as Future Prices are Concerned

As we have reported on more than one occasion, President Trump’s tariffs are set to cause a lot of trouble for the market, and the auto industry will be significantly affected, the experts around the world are saying.

The companies are trying to adapt to the new conditions, and while some of them will shift part of their production to the U.S., this won’t be a long-term solution, and it won’t help the buyers that much since no car can be 100% U.S.-made.

Toyota and Lexus are among the many companies that will have to adapt to the new conditions, especially due to the fact that the two companies will see 24 new models released in the near future. This raises a valid question – what about the prices?

The situation is very strange at this point. The fate of the tariffs is uncertain, as Trump is prone to changing decisions in the blink of an eye, but there is also the judicial system in the U.S., which has more authority than Trump in this matter.

Considering this, automakers have a hard time adapting to the situation, as they cannot know what to expect. Trump might withdraw or postpone his tariffs, he might strike a deal, or he might raise them… it’s a vicious cycle of uncertainty, and it is natural for the companies to be alert.

In a recent interview, David Christ, group vice president and general manager of the Toyota Division, revealed that the company is in a so-called “wait-and-see mode” when the prices of the upcoming models are concerned.

We have already reported on many of Toyota’s new models, so you can imagine the state the company is in. The 25% tariffs will affect all imported cars, and Toyota’s cars are predominantly made in Japan.

But even that’s not the issue. There are parts that are imported from other countries, so even with Toyota’s potential production shift to the U.S., most of the parts – which are still affected by the tariffs – would have to be imported from outside the U.S.

Currently, there are no decisions set in stone, but if the tariffs really kick in as the more pessimistic approaches claim, it could significantly raise the prices of Toyota’s cars, thereby making the cars unaffordable to a lot of Americans who generally opted for cheaper options.

Have something to add? Let us know in the comments below!