Tariffs on the 4 Runner and the Land Cruiser

[trainman605]

As these two units are made in Japan I assume there will be a 25% tariff on these units as well as other models not made here in the U.S. Will Toyota and Lexus get some discount on tariffs as they have plants here in the U.S. As I'm now ready to buy new vehicle at this time, I feel by the time I'm ready to buy this tariff thing will be worked out.

 

[Hungryhawk]

Lots of change can occur. I think some classes of vehicles have different tarrifs.
If you want a runner now-Go for it.
If not really ready - wait.

 

[88Center]

All foreign vehicles and parts will have tariff of 25%, even if the vehicles/parts are assembled in the United States. No matter what country the vehicles/parts come from.

However, companies that import vehicles under the United States-Mexico-Canada Agreement (USMCA) will get special consideration until the Commerce Department establishes a process for levying the 25% duties, the White House said.

USMCA-compliant automobile parts will remain tariff-free until the commerce secretary, in consultation with U.S. Customs and Border Protection, establishes a process to apply tariffs to their non-U.S. content.

TRD Pro is ~$69k, and 25% would mean a new cost of ~$86k.

Fixing older 4runners just got more expensive too.

 

[thatoneguy]

If you don't want to see how this is going to play out, you could just buy that new vehicle very quickly, in the next several days!

 

[thatoneguy]

All foreign vehicles and parts will have tariff of 25%, even if the vehicles/parts are assembled in the United States. No matter what country the vehicles/parts come from.

However, companies that import vehicles under the United States-Mexico-Canada Agreement (USMCA) will get special consideration until the Commerce Department establishes a process for levying the 25% duties, the White House said.

USMCA-compliant automobile parts will remain tariff-free until the commerce secretary, in consultation with U.S. Customs and Border Protection, establishes a process to apply tariffs to their non-U.S. content.

Hooray. More bureaucracy. Just what we needed, a complicated accounting of every little component in modern vehicles.

 

[Rick G.]

All foreign vehicles and parts will have tariff of 25%, even if the vehicles/parts are assembled in the United States. No matter what country the vehicles/parts come from.

However, companies that import vehicles under the United States-Mexico-Canada Agreement (USMCA) will get special consideration until the Commerce Department establishes a process for levying the 25% duties, the White House said.

USMCA-compliant automobile parts will remain tariff-free until the commerce secretary, in consultation with U.S. Customs and Border Protection, establishes a process to apply tariffs to their non-U.S. content.

TRD Pro is ~$69k, and 25% would mean a new cost of ~$86k.

Fixing older 4runners just got more expensive too.

What a joke. These new 6th gen T4Rs are already way too expensive / over priced as it is. I wouldn't pay a tariff on top of that. F that.

Well I'm glad I have my low miles 2022 T4R SR5 Premium 4WD. And, we just finished paying it off last week. I'm retired and don't drive the T4R much at all, not like I have to commute to a job five days a week putting miles on it. I plan on keeping it well serviced and hanging on to it for a very long time. I'm going on 70. This '22 T4R could possibly be the last vehicle I'll ever need.

If the manufacturer or the dealers hope to move these new T4Rs or Land Cruisers in any appreciable numbers, they are going to have to eat the tariffs, not pass them on to the consumer. Who the hell will be able to afford one of these things? Total insanity!

 

[88Center]

What a joke. These new 6th gen T4Rs are already way too expensive / over priced as it is. I wouldn't pay a tariff on top of that. F that. Well I'm glad I have my low miles 2022 T4R SR5 Premium 4WD. And, we just finished paying it off last week. I plan on keeping it well serviced and hanging on to it for a very long time. If the manufacturer / or the dealers hope to move these new ones in any numbers, they are going to have to eat the tariffs, not pass them on to the consumer. Who the hell will be able to afford one of these things?

No dealer can afford to eat these costs. They would be out of business very fast. So, as with every other company that is getting tariffed, all added costs will be passed on to the consumer.

Real q is how will this affect dealers and used car prices? If nobody is buying new vehicles, the lots will be filled with new cars which aren't moving. Used car prices could jump strong again like covid days? Perhaps.

Ferrari just announced they will increase prices by 10% to offset President Trump's tariffs.

 

[Rick G.]

No dealer can afford to eat these costs. They would be out of business very fast. So, as with every other company that is getting tariffed, all added costs will be passed on to the consumer.

Real q is how will this affect dealers and used car prices? If nobody is buying new vehicles, the lots will be filled with new cars which aren't moving. Used car prices could jump strong again like covid days? Perhaps.

Ferrari just announced they will increase prices by 10% to offset President Trump's tariffs.

??? How is increasing their prices by 10% going to offset a tariff?? It seems doing that would only worsen the situation by increasing the tariff charge all the more?

 

[88Center]

??? How is increasing their prices by 10% going to offset a tariff?? It seems doing that would only worsen the situation by increasing the tariff charge all the more?

The wording on the articles was a bit weird and probably a translation issue, but Ferrari is going to eat the other 15% of the tariff on their end. So the customer will only see a 10% increase, instead of the 25% which will be seen on Lamborghini, Mercedes, and every other imported vehicle.

So $1m Ferrari will be $1.1m instead of $1.25m.

My guess is they assume these tariffs wont last long. And when/if they cancelled, Ferrari will look really good as being the one company that cared enough about their clients they were willing to eat a big 15% cost on every vehicle sold. So this move feels like a PR gamble.

But if tariffs last for years, it could really hurt their profits more than other car companies. Last year, Ferrari produced around 13,752 vehicles.

 

[fkheath]

but Ferrari is going to eat the other 15% of the tariff on their end. So the customer will only see a 10% increase, instead of the 25% which will be seen on Lamborghini, Mercedes, and every other imported vehicle.

So $1m Ferrari will be $1.1m instead of $1.25m.

Ferrari is not eating anything. Another way of looking at it is that Ferrari was making 15% more profit before the tariffs, courtesy of sucker customers.

 

[Ripper238]

Glad i got my 4Runner when i did. At this rate my 4Runner will never go down in price/value no matter the milage.

 

[5thToy]

The wording on the articles was a bit weird and probably a translation issue, but Ferrari is going to eat the other 15% of the tariff on their end. So the customer will only see a 10% increase, instead of the 25% which will be seen on Lamborghini, Mercedes, and every other imported vehicle.

So $1m Ferrari will be $1.1m instead of $1.25m.

My guess is they assume these tariffs wont last long. And when/if they cancelled, Ferrari will look really good as being the one company that cared enough about their clients they were willing to eat a big 15% cost on every vehicle sold. So this move feels like a PR gamble.

But if tariffs last for years, it could really hurt their profits more than other car companies. Last year, Ferrari produced around 13,752 vehicles.

More like Ferarri's profit margin on cars sold is so high they can afford to lower prices to importers.

 

[trainman605]

I feel that in 6 months tariffs will be pretty much a non-issue and prices will fall in place just like everything else. If you can't afford it today, then 6 months down the road you probably won't be able to afford it them.

 

[PhotoRunner]

Toyota released a statement that they don't in intend on raising prices in the US for the time being. I imagine if the tariffs last a long time they will probably need to at some point. reuters.com

 

[fourwd1]

Toyota released a statement that they don't in intend on raising prices in the US for the time being. ...

That doesn't mean the dealers won't.

Many already charge over MSRP.

 

[jreask]

What a joke. These new 6th gen T4Rs are already way too expensive / over priced as it is. I wouldn't pay a tariff on top of that. F that.

Well I'm glad I have my low miles 2022 T4R SR5 Premium 4WD. And, we just finished paying it off last week. I'm retired and don't drive the T4R much at all, not like I have to commute to a job five days a week putting miles on it. I plan on keeping it well serviced and hanging on to it for a very long time. I'm going on 70. This '22 T4R could possibly be the last vehicle I'll ever need.

If the manufacturer or the dealers hope to hmove these new T4Rs or Land Cruisers in any appreciable numbers, they are going to have to eat the tariffs, not pass them on to the consumer. Who the hell will be able to afford one of these things? Total insanity!

I am 67 and just bought a new TRD Sport Premium. I don’t put many miles on my vehicles either. I think the 4Runners may be a little overpriced but I was more than happy to pay MSRP for my Sport. The truck still has the Japan build quality. The 6th gen is a notch above the 5th gen. It handles much better with the new steering, it actually moves when I step on the pedal. And now they are full of state of the art technology. I sold my Pro to buy the 6th gen and am glad that I did. I might be in the minority but until you drive one you have no idea how much better it drives. WOW !

 

[papadop88]

I am 67 and just bought a new TRD Sport Premium. I don’t put many miles on my vehicles either. I think the 4Runners may be a little overpriced but I was more than happy to pay MSRP for my Sport. The truck still has the Japan build quality. The 6th gen is a notch above the 5th gen. It handles much better with the new steering, it actually moves when I step on the pedal. And now they are full of state of the art technology. I sold my Pro to buy the 6th gen and am glad that I did. I might be in the minority but until you drive one you have no idea how much better it drives. WOW !

Congrats on the new rig!

I agree with you. The 6th Gen is, and will be a MUCH better vehicle than the 5th gen. The 5th is ancient, and I don't care what anyone says...yes it's been proven to be indestructible. So will the 6th gen. Japanese quality all the way, baby.

Enjoy the new ride.

My Pro is arriving sometime mid May and I already have parts piling up in my garage. Excited to usher in the new generation!

Cheers!

 

[papadop88]

That doesn't mean the dealers won't.

Many already charge over MSRP.

Any dealers, at this point, charging over MSRP shouldn't receive your business. There are PLENTY of dealers who sell at MSRP or below.