Trump Tariffs on Japan [Admin Warning: No Politics, Only Policy Discussions]

[jclende5]

Welp, announced today. 25% tax on Japanese and South Korean imports.

The ~$58k ORP I’ve been wanting is now gonna be ~$72k.

Hopefully he TACOs and these don’t go into effect.

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[Reed]

I think you need more information before you can draw that conclusion as to the price impact. Tariff may change; Toyota may absorb some amount; tariff if pct based on origin of parts (if I recall). Agree the upward cost pressure is there. Not the best scenario.

 

[MaximumBob]

Same boat here, was planning to buy an ORP in the fall.

 

[Dead Horse]

I won't buy ANY vehicle FFS. This timeline is so dumb.

 

[Don B]

I think you need more information before you can draw that conclusion as to the price impact. Tariff may change; Toyota may absorb some amount; tariff if pct based on origin of parts (if I recall). Agree the upward cost pressure is there. Not the best scenario.

The Rumor I got was they will be absorbing some and the remainder will be spread over all their models.

 

[UOduck23]

Tariffs are charged to the company on their costs of producing the goods as it is essentially a fee to them. It isn’t based on the MSRP or the final cost to the consumer (no tariffs on markups essentially).

This means that if Company A makes shoes for $40 overseas and sells it for $100 once imported, the tariffs are on the $40 it costs to manufacture them. A 25% tariff would be $10 (25% of $40) not $25.

it’s still going to be an unwelcome upcharge but it helps to know the real numbers.

 

[CrispyTacoLover]

Tariffs are charged to the company on their costs of producing the goods as it is essentially a fee to them. It isn’t based on the MSRP or the final cost to the consumer (no tariffs on markups essentially).

This means that if Company A makes shoes for $40 overseas and sells it for $100 once imported, the tariffs are on the $40 it costs to manufacture them. A 25% tariff would be $10 (25% of $40) not $25.

it’s still going to be an unwelcome upcharge but it helps to know the real numbers.

That’s still $10. Would it be added to the $100 shoe?

 

[UOduck23]

In most cases some, if not all, of that will be passed onto the consumer. The point I made in my original comment is that people mistakenly believe the value will be higher. Just correcting the math.

 

[Bulldog66]

Correct, tariffs apply to the FOB (cost to manufacture) which is then paid by that manufacture. Make no mistake, companies can only absorb so much before passing it along to the consumer.

Two more catches here:
1. You will pay more, and maybe for a short period your resale will be more. When tariffs come down resale will be based off of new car prices. Chances are you will eat whatever tariff you pay down the road.
2. This will impact demand and thus production. So, your wait time will likely go up.

We were going to buy a Trailhunter this fall. But unless they drop back to normal we won't. The price is high enough as is.

I work in design in the consumer segment. Tariffs have been brutal in so many ways.

 

[brumey]

I suspect that Toyota have plenty of "wiggle room" to absorb the tariffs. The increase in cost over past year models was huge. If they pass it on the the consumer in the cost of the car, they will simply lose market share and American Made vehicles and companies will pick up those sales.

Just my opinion.

 

[Gator 22]

The problem is that most American cars have a large amount of foreign parts. Middle America will again take the most pain from tariffs.

 

[OnePunchPan]

I think we can all agree that this is bad news bears regardless of how Toyota decides to absorb the cost. Like some folks have already mentioned, they will only be able to take so much of the cost.

If you were someone printing out custom 4Runner parts at home and all of a sudden your filament costs $40 instead of $25 (hypothetical numbers here), you'd probably take a hard look at how long you can keep your current pricing for before it starts to eat into your share of the profits.

 

[Rusty Rattler]

Iam sure we have people buy Bronco’s over a 4Runner. The tariffs of course will be added to the cost of a Japanese built car. Also any parts will cost more. We all have had a great party buying Japanese cars for years..thats why America has a rust belt.

 

[jclende5]

Manufacturing is booming in the South.

https://web.archive.org/web/2025070...4/sun-belt-rust-belt-manufacturing-jobs-myth/

That being said, with as willing as the big American brands have been to sell disposable junk vehicles over the past 20 years, I don't feel much of an obligation to buy American made.

To me, one of the biggest appeals of 4Runners/Land Cruisers is that they are made in Japan by people who care about their craft and insist on making a quality product that lasts.

 

[OnePunchPan]

Iam sure we have people buy Bronco’s over a 4Runner. The tariffs of course will be added to the cost of a Japanese built car. Also any parts will cost more. We all have had a great party buying Japanese cars for years..thats why America has a rust belt.

I'd love to buy American. I highly considered a new 2025 Dodge Durango (didn't even consider the Bronco at the time) but was concerned about overall reliability over time. Especially if I intend on driving this 5ever. Though I'm sure with proper upkeep, a good Ford will last quite well over time.

Maybe later on I'll spoil myself with a Bronco

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