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Donald Trump pitching the phrase, "Tariff, is the most beautiful word in the dictionary…because tariffs are going to make us rich as hell, it's going to bring our country's businesses back," should be disconcerting for car shoppers per a recent Reddit Toyota forum discussion.
“Rich as hell?” For whom?!
Car shoppers are justifiably concerned that what this translates to is foreign-assembled new car prices are going to rise significantly this year and make car shoppers poorer.
With the anticipated 25% tariff on Japanese-built automobiles, car shoppers―especially those wanting a "Made-in-Japan" model―could be especially affected.
In fact, a recent Reddit post from New_Reddit_User_89 on the r/Toyota forum asks if he should worry that his recently ordered Toyota Crown Signia will be affected and cost him significantly more when it arrives after April 2.
This is a good question and one that cannot be accurately answered just yet.
Why There is No Accurate Answer to This Good Question
According to a few linked news reports about the upcoming tariff increase, even the experts with their finger on the pulse of the economic effect this will have on exactly who, when, and to what extent is unclear.
This past month, Toyota sent representatives to the White House to pitch why they should not be hit with this significant tariff increase. Still, Trump is holding all his cards close to his chest and delaying showing his hand―a tactic pointed out by The Economist in an article titled, "The Transactional World Donald Trump Seeks Would Harm Not Help America," that is the foundation of Trump's political wheeling-dealing.
So much so that Japan's Toyota manufacturing, which supported Trump's re-election, is now beginning to feel itself being "trumped," as recently reported in the New York Times.
With Japan's economy already stifled by inflation, some economists estimate that if Mr. Trump's automotive tariffs take effect as threatened, they could wipe out 40 percent of potential economic growth this year---NYT "Toyota Was Bullish on Trump. Then Came the Tariff Threats" 24 March 2025
We did not receive a response that Japan would be exempt," said Yoji Muto (Japan's Minister of Economy, Trade and Industry). He added that the United States had acknowledged Japanese companies' contributions to its economy, but he declined to elaborate on his counterparts' stance otherwise―Reuters "Japan's trade minister fails to win tariff exemption assurance from the US" March 10, 2025.
In other words, Japan (and, by extension, US car shoppers desiring a Made-in-Japan Toyota) will have to wait until April 2 or possibly longer, as the deadline and rules of trading between the U.S. may change.
The Best Defense is a Good Offense
While car shoppers have no direct say on US politics, they do have a say when it comes to the dealerships.
Suppose the proposed 25% tariff on imported automobiles from Japan takes effect on April 2, 2025. In that case, its impact on the OP's pre-ordered Toyota largely depends on the specific terms of his purchase agreement and the timing of the vehicle's importation.
Generally, tariffs are applied based on the date of importation into the United States, not the order or shipment date. Therefore, if your vehicle arrives at a U.S. port on or after April 2, it may be subject to the new tariff, potentially increasing the final cost.
However, the final price tag is under the control of the dealership's honor.
The best-case scenario is that the dealership will honor the agreed-upon price at the time of order, absorbing any additional costs incurred due to tariffs.
The worst-case scenario is that the fine print of your sales contract has an addendum covering tariffs that adds the final cost to the shopper upon arrival of the car.
However, this practice varies among dealerships and is influenced by individual contracts and policies.
To protect yourself from potential unknown consequences of how the tariff might affect your car shopping purchase, you should:
- Review Your Purchase Agreement―Examine the contract carefully for any clauses related to potential price adjustments due to changes in import duties or tariffs.
- Contact Your Dealership―Discuss the potential impact of the tariff on your vehicle's price and ask what if any measures the dealership might take to mitigate cost increases.
- Monitor Shipment and Arrival Dates―Staying informed about your vehicle's shipping status to determine if it will arrive before or after the tariff implementation date.
Related article: The Made in Japan Toyota You Might Not Want
In short, given the uncertainty surrounding Trumpian international trade policies, it is crucial to discuss the question the OP asks with your dealership and get it in writing to avoid any possible changes to your vehicle's pricing once it arrives.
For more about buying a Made-in-Japan car or truck, here are two that explain why this is preferable to Toyota models made elsewhere:
- Are Toyota's Made in Japan Better than Toyota's Made in America? Let’s Find Out!
- All Cars Built In Japan Are Safe To Buy, And They're Reliable Long Term…Well, That Used To Be The Case, But Not Anymore, Admits Mechanic From Japan
Timothy Boyer is an automotive reporter based in Cincinnati who currently researches and works on restoring older vehicles with engine modifications for improved performance. He also reports on modern cars (including EVs) with a focus on DIY mechanics, buying and using tools, and other related topical automotive repair news. Follow Tim on Twitter at @TimBoyerWrites as well as on Facebook and his automotive blog "Zen and the Art of DIY Car Repair" for useful daily news and topics related to new and used cars and trucks.
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