Toyota considers making top-selling RAV4 SUV in the US to avoid Trump tariffs: report

Core Insights - Toyota is reconsidering its production plans for the RAV4 SUV to mitigate the impact of President Trump's tariffs, potentially producing the next version at its Kentucky factory alongside Canada and Japan [1][5][8] - The RAV4 was the best-selling vehicle in the US last year, surpassing Ford's F-150, with over 475,000 units sold, accounting for about 20% of Toyota's total US vehicle sales [2][3] Production Plans - The final production plans for the RAV4 have not been confirmed, and Toyota is evaluating its options in light of the tariffs [4][10] - If production at the Kentucky plant proceeds, it is expected to start in 2027 [7] Tariff Impact - The current 25% tariff on foreign vehicle imports is expected to expand to include auto parts, significantly affecting production costs and vehicle prices in the US [8][11] - Other automakers, including General Motors and Nissan, are adjusting their production strategies in response to the tariffs, with some halting production plans and others increasing US manufacturing [9][10][13] Market Dynamics - The introduction of tariffs has led to panic-buying among US consumers, resulting in a rapid decline in the supply of new and used vehicles available at dealerships [10] - President Trump has indicated a potential temporary pause on the auto tariffs to assist car companies in adjusting their production [12][14]