Toyota considers making top-selling RAV4 SUV in the US to avoid Trump tariffs: report
Toyota has emerged as the latest automaker to rethink its production plans to avoid President Trump’s harsh tariffs, according to a report.The Japanese company is weighing whether to produce the next version of its top-selling RAV4 SUV at its Kentucky factory, in addition to manufacturing in Canada and Japan, sources familiar with the matter told Reuters.Toyota had originally planned to scrap Kentucky production of the RAV4 and solely export the new model to the US from Canada and Japan, sources said.Toyota told The Post it would not comment on speculation.“We continually study ways to improve our manufacturing efficiencies to best serve our customers and provide stable employment for our team members,” the company said in a statement.Toyota’s RAV4 was the best-selling vehicle in the US last year, according to market research firm JATO Dynamics.It stole the crown from Ford’s F-150 truck, which reigned in the top spot for years.The Japanese automakers sold more than 475,000 RAV4s in the US last year, or about a fifth of its total US vehicle sales.Toyota is set to unveil its 2026 RAV4 later this year and gradually introduce it in different global markets, though the exact timing is unknown, a source told Reuters.
The 2026 model will be the first major redesign since the 2019 SUV.The final production plans have not been made, according to the report.Toyota, like many other automakers, is not able to shift manufacturing on a moment’s notice. If Toyota follows through with its plans for the Kentucky plant, it would likely start production of the RAV4 there in 2027, a source told Reuters.Most vehicles are made along particularly complex supply chains, with auto parts often making multiple border crossings before the finished product is ready for sale.Foreign vehicle imports currently face a stiff 25% tariff from Trump, which is expected to expand to include auto parts next month.Japan, meanwhile, has been slapped with a 10% import tax, along with many other...