Semi adjacent tariff comment, I purchased a 2025 Toyota vehicle this week that has final assembly in Mexico and subject to 25% import tax. Dealership I purchased from has a rare (for car dealers) business model that is very honest and straightforward. As a result they have many employees with 10-20 year tenure, and while they don't have access to the corporate executive suite, they are very well informed on all things Toyota.
I discussed tariff tax with several of the staff and they relayed below:
Rather than change prices for last 3-4 months of the '25 model year, Toyota absorbed the import taxes on affected vehicles.
Absorbing the import tax is not sustainable long term.
Model year change will be logical time to raise prices.
They expect that higher costs will initially be spread across the entire fleet regardless of vehicle origin as a way to avoid flat up 25% price increase on applicable models.
Upstream component import tax costs are unknown, for example electronic parts that are taxed before being assembled on PCB's might possibly be taxed again once installed in the vehicle (or they might not...)
Takeaway - Prices are going to eventually go up significantly. Extending this to other goods, you are much more likely to see 3x 5% price increases spread out over time than you are to see a single 15% increase.
Happy shopping everyone!!
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