Toyota has emerged as the latest automaker to rethink its production plans to avoid President Trump’s strict tariffs, according to the report.
In addition to manufacturing in Canada and Japan, Japanese companies are weighing the next version of their top-selling RAV4 SUV at their Kentucky factory.
Toyota originally planned to discard production in Kentucky, RAV4 production, and export new models from Canada and Japan to the US, sources said.
Toyota said it would not comment on the post on speculation.
“We are continuing to study how to improve manufacturing efficiency, provide optimal service to our customers and provide stable employment for our team members,” the company said in a statement.
Toyota’s RAV4 was the best-selling vehicle in the US last year, according to market research firm Jato Dynamics. I stole the crown from a Ford F-150 truck.
Last year, the Japanese automaker sold over 475,000 RAV4s in the US, selling about a fifth of all US car sales.
Toyota will unveil the 2026 RAV4 later this year and will gradually introduce it in various global markets, but the exact timing is unknown, sources told Reuters. The 2026 model will be its first major redesign since the 2019 SUV.
According to the report, no final production plans have been made. Toyota, like many other automakers, is unable to shift manufacturing instantly.
If Toyota goes ahead with plans for its Kentucky plant, it is likely that it will begin production of the Rav4 in 2027, sources told Reuters.
Most vehicles are built along particularly complex supply chains, and auto parts often create multiple boundaries before the finished product is sold.
Foreign vehicle imports now face severe 25% tariffs from Trump.
Meanwhile, Japan, along with many other countries, has been slapped with a 10% import tax, and as the White House is negotiating, there is a 90-day suspension from Trump’s original “mutual” tax rate. Trump initially threatened a 24% rate in Japan.
Several major auto companies have stopped production plans, discussed manufacturing in the US, and curb imports that try to avoid harsh taxes.
Volkswagen’s luxury brand Audi has held imports of all vehicles arriving after April 3 – when car rates come into effect – at US ports order dealers to concentrate on selling current inventory.
While both General Motors and Nissan announced plans to promote production at their U.S. factories, Stellantis, who owns Jeep, Ram and Dodge, and Ford, have rolled out discounts to shake up tariff advertising customers.
The threat of rising prices has led to panic viewing, with US shoppers rushing to dealers across the country just weeks before rates start hitting prices.
As a result, in March, the supply of new and used cars that met us quickly fell.
Earlier this week, Trump indicated he was considering a temporary suspension of car rates “to support some of the car companies.”
He explained that it would take time for automakers to shift production from Canada, Mexico and other countries.
“And they need a little time because they’re going to make them here, but they need a little time, so I’m talking about that.”
On Wednesday, the president met with Treasury Secretary Scott Bescent and Treasury Secretary Howard Luttonick with senior Japanese officials to discuss trade tensions.
In a social media post following the meeting, Trump wrote:
With post wire
