Japanese Carmakers Say U.S. Price Hikes Not Due To Tariffs

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Leading Japanese carmakers have denied claims that they raised car prices in the United States because of tariffs from the Trump administration. The denials come after a report by Nikkei Asia suggested that Japanese automakers were passing higher tariff costs to American buyers.

Background on U.S.-Japan Tariffs

Since April 2025, Japanese cars being sold in the U.S. faced new tariffs of 25%.

On July 22, a new trade deal between the U.S. and Japan cut those tariffs down to 15%.

The policy changes raised concerns that Japanese automakers might raise their vehicle prices to cover the impact.

Toyota’s Response

Toyota, the largest carmaker in Japan, strongly rejected claims that its July 2025 price changes were linked to tariffs.

The company said the adjustments were part of its regular, annual price increases to reflect higher operational costs such as labor and materials.

Earlier in June, Reuters had reported that Toyota planned an average price increase of about $270 per car in July. At that time, Toyota also said this was not directly caused by tariffs.

A company spokesperson added that Toyota does not want to make its cars unaffordable for American customers by reacting directly to trade tariffs.

Financial Impact of Tariffs

Even though Toyota is not increasing prices specifically due to tariffs, the company’s financial reports highlight the cost burden.

In its results for the first quarter through June 2025, Toyota estimated U.S. tariffs added roughly 450 billion yen (about $3.03 billion) in additional costs.

For the full year, the company projects total tariff impacts to reach around 1.4 trillion yen, even after accounting for the July trade deal.

What This Means for U.S. Car Buyers

For now, Japanese carmakers maintain that their U.S. vehicle prices are not being directly raised because of trade tariffs.

Instead, any price change is being explained as part of normal cost adjustments. However, the high estimated financial impact of tariffs shows the pressure these companies face in balancing profits and customer affordability.