Japanese automakers have set the record straight on their pricing maneuvers in the U.S. as tariff rebalancing continues. Despite the recent introduction of tariffs, they have stated that they will not raise prices for vehicles sold in the U.S. market. This decision is especially welcome as manufacturers struggle with the unintended consequences of recently enacted trade agreements and the indirect tariffs fought by the Trump administration.
In April, Japan was hit with a 25% tariff on cars, which would bankrupt Japan’s largest automaker, Toyota. The company attributed the U.S. affiliate’s price increases in July. This spike was due entirely to the tariffs’ impact. On July 22, the U.S. and Japan signed a preliminary trade agreement. Consequently, the effective tariff rate reduced to 15%. That’s why Toyota is predicting that tariffs from the U.S. will cost them at least 450 billion yen, or roughly $3.03 billion, in only the first quarter. Based on these numbers, they estimate the cumulative effect might leap as much as 1.4 trillion yen for the fiscal year.
The newly negotiated U.S.-Japan trade deal was supposed to ease some of the financial stress on Japanese automakers. In all this background, Toyota was sure to point out that the price hikes on its 2026 Honda models are unrelated to tariffs. Rather, they are an outcome of the cumulative effects of additional features that increase vehicle value.
“Any price changes for the 2026 Honda models now on sale are tied to added feature content that enhances value for the customer and boosts the competitiveness of our products.” – Honda
Nissan echoed Toyota’s sentiments, stating that it continues to manage inventory effectively to align with consumer demand while maintaining competitive pricing in light of market fluctuations.
“At the same time, we are managing inventory to meet consumer demand while maintaining competitive pricing. We continue to monitor the market and will make adjustments as needed,” – Nissan
Toyota doubled down on its pledge to avoid raising prices. The company noted that its pricing adjustments are not a response to tariffs or potential increases but rather represent regular annual adjustments reflecting operational cost changes.
“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
The ramifications of these tariff shifts are much larger than changing price strategies. A scoring system hoists the most American vehicles to the top of the rankings. It looks at the location of final assembly and what share of parts are sourced from the U.S. and Canada. This new tool is a boon to consumers who want to support domestic manufacturing with their vehicle purchases.