Japanese automakers say they are not raising U.S. prices due to tariffs—despite some reports suggesting otherwise.
The details: Toyota, Honda, and Nissan have increased prices on select models in recent weeks—but all three stress the hikes are unrelated to tariffs, which were lowered to 15% by the Trump administration on July 22.
Toyota, Japan’s largest automaker, raised prices by an average of $270 in July, citing annual adjustments tied to “various operational costs.”
Honda increased the MSRP of its popular Civic by $345 across the board, attributing any hikes on 2026 models to added features.
Nissan said its higher prices reflect inventory management strategies and market competition.
What they’re saying: “We have said that we would observe the situation concerning the tariffs as governments were still negotiating then, but our general stance was not to increase prices to avoid making our cars unaffordable for the customers waiting for their vehicles,” Toyota officials told CNBC.
Why it matters: Regardless of the reasoning, consumers are likely to link rising MSRPs to tariffs—putting added pressure on dealers to emphasize transparency, manage costs, and market effectively to sell buyers on the value of the higher price points.
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Between the lines: Even if automakers deny a direct connection between tariffs and MSRPs, the burden remains substantial.
Toyota’s U.S. tariff impact is expected to reach $9.7 billion for the fiscal year ending March 31, 2026.
Honda projects a $3 billion hit due to tariffs for the year.
Nissan estimates $2.1 billion in added costs by March 31 because of the levies.
Bottom line: Japanese automakers are walking a fine line—absorbing billions in tariff-related costs while maintaining that recent price hikes reflect normal business factors. The reality is mounting margin pressure that could squeeze profitability and heighten the stakes for consumer messaging.
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