Impact of proposed new tariffs on foreign built cars?
- Thread starter RickBullotta
- Start date
Thanks for saying that. I would generally agree with you because I hate that politics touch every part of life these days. You cant even escape it in video games because a bunch of dudes have "MAGA" or "TRUMP" in their screen name. Having said that, this is a thread about executive orders that are imposing tariffs on the vehicles we know and love. The thread itself is already political in nature. We should try to keep the discourse civil, though.
That is a fascinating take. Republicans are the same party that cancelled Colin Kaepernick for standing up against racial injustice and a few short months ago were blowing up cases of Budweiser beer. Are the motivations for that somehow better?
Which playing field are you taking about? The economy was doing great under Biden. America had free trade and great relationships with our allies. Have you checked the stock market today? Do you feel better off when you check out at the grocery store? I don't.
well, that oughtta get it locked
I feel for you brother wish there was something I could’ve helped still pulling for you
This post is Very relevant to me and the information given is greatly appreciated.
I have been saving for 20 years in my automotive account to replace my 20 year old SUV. One reason is that there has been nothing available that I like to replace my 2005 Mercedes ML500 until my brother suggested I look into the new design Lexus GX550. (he bought a 2023 GX) I instantly fell in love with the vehicle. I immediately put in a $1,000 deposit for a 2025 Luxury+ but after further research I changed it to an Overtrail+.
Now with an added 25% tareff which would add $20,000 to the GX I don't know what I'm going to do.
Following this post will help me understand what is going on.
I agree not to make this political but focus on just the facts relating to purchasing a new vehicle.
I've already cancelled my account on another Lexus GX forum for locking this subject.
I have been saving for 20 years in my automotive account to replace my 20 year old SUV. One reason is that there has been nothing available that I like to replace my 2005 Mercedes ML500 until my brother suggested I look into the new design Lexus GX550. (he bought a 2023 GX) I instantly fell in love with the vehicle. I immediately put in a $1,000 deposit for a 2025 Luxury+ but after further research I changed it to an Overtrail+.
Now with an added 25% tareff which would add $20,000 to the GX I don't know what I'm going to do.
Following this post will help me understand what is going on.
I agree not to make this political but focus on just the facts relating to purchasing a new vehicle.
I've already cancelled my account on another Lexus GX forum for locking this subject.
The best way to deal with a narcissist is to ignore them.
They way manufactures will deal with the tariffs is to not add 25% to each imported car but rather spread it out across their entire product line. The GX's and other imports may get the brunt of the increase because they are the higher end models while lower end models will see less of an impact to keep them moving off the lots.
I am going to see how this plays out since my allocation hasn't been assigned to me yet.
I've seen similar comments elsewhere, but I'm not fully getting it. Are you saying that (for example) a mfg has 5 models being imported, and they marked each one up 5% that would qualify as a "25% tarrif"?? Or that some models may be marked up less than 25% but others maybe more than 25%?
I agree
FWIW, I just spoke with a new car manager that said “[t]here will be no change in the price of your GX.” This was in response to my question about tariffs for a vehicle I placed my deposit down last weekend, with an ETA this month. So, basically he said if you’ve placed a deposit down and secured an allotted vehicle, the price is “locked in”. He couldn’t comment on future allocations. 
Should things change, I will revise this post with this emoji:
. Good luck to everyone!
Should things change, I will revise this post with this emoji:
. Good luck to everyone!Not necessarily just the imported models will be marked up. The manufacture will end up marking up all models they are selling regardless of them being imported or not. That way, the imported models don't get heavily inflated so that they are basically unsellable. Lets say Lexus has 15 models that they sell and 5 are imported. The cost of the tariffs for the 5 imported models would be distributed across all 15 models with the higher end ones getting a little higher increase, because the people buying them can afford the larger increase than the people buying the lower end models.
I think the logic is that Toyota/Lexus has vehicles made in the US and are not subject to tariffs, such as the TX. Instead of Lexus raising the MSRP on the GX by 25% and keeping the TX MSRP where it currently is at. They will instead raise the MSRP of the TX and GX by 12.5% for this simple example.
So, across the entire lineup (and Toyota might group Lexus and Toyota together), they will blend the extra cost of tariffs across all vehicles regardless of country of origin.
My best guess is that the most immediate impact will be that Toyota/Lexus will dramatically decrease new allocations to the US for the GX and other foreign-built vehicles. I think you might be seeing this already, where it seems like the dealers that I am on the waitlist for have not gotten new inventory in what seems like a month.
Toyota/Lexus do not have much insight into what the new market will support regarding cost increases for the GX. If they thought they could get more for the vehicle, they would have already priced it as such. Additionally, with the fears of a global recession, I would guess they don't want to ship many vehicles to the US, have a massive outlay of money on import tariffs, and then have their inventory sit on lots because consumer spending has tanked. My understanding of how vehicle sales work is that tariffs will be paid upon import to the US, not upon the sale of the vehicle to the end consumer.
My prediction is that MSRP for GX's will hold steady but supply will drop for the next 3-4 months while the market settles and we see if the tariffs remain in place. After that, if the economy tanks and tariffs are lifted, it might be a good time to buy one. If the tariffs stick, but demand remains, MSRP will go up. If tariffs stick, but demand drops, they will decrease production and increase MSRP.
My rational side says if we get an allocation for a GX that we want, at MSRP, we should take it (Our trade-in has jumped by $3k in the last week for the instant offers). My emotional side tells me to sit on the $80k I have in our savings account in case the economy goes sideways.
Excellent write-up, thanks!
Just got notice from my dealer that my August 2023 order for a white OT+ has just been allocated and will be produced later this Month.
Previously I was told August 2025 delivery.
Seems Canada might get a few more allocations now.
Previously I was told August 2025 delivery.
Seems Canada might get a few more allocations now.
I totally lucked out last night. I wasn't expecting a call for another couple of months, and was starting to resign myself to supercharging my Taco for better towing, but the dealer called me out of the blue because some housewife rejected her allocation. She didn't like the Saddle Tan seats! Lady must either live in a bubble or rich enough to just throw money away. Anyway, as of a few short hours ago, I am the proud owner of a 2025 Overtrail! MSRP and tariff free!
I had a brief chat with my dealer today. He said allocation prices haven't changed as of today. No guidance from Lexus yet.
My gut feeling is that prices will go up. But it will not simply be current MSRP + 25%. Lexus / Toyota will eat some of it, and like the other commenters say, spread it among all models since some models are not subject to tariff due to being produced in the US. 10-15%, maybe?
My gut feeling is that prices will go up. But it will not simply be current MSRP + 25%. Lexus / Toyota will eat some of it, and like the other commenters say, spread it among all models since some models are not subject to tariff due to being produced in the US. 10-15%, maybe?
Insightful & logical @deadlikeme . I am seeing the allocations drying up as well, and I think your narrative makes a lot of sense as to why.
And I'm 100% in the same position you are. For now, the Lexus dealer has $2,500 from me. I'm not really sure I want to up that ante at this time.
And I'm 100% in the same position you are. For now, the Lexus dealer has $2,500 from me. I'm not really sure I want to up that ante at this time.
There's too much uncertainty to tell what's going to happen at the moment. Toyota said they're maintaining prices but if the tariffs are in place for a while than everyone's prices are going to go up, even for cars MIUSA.
Just a WAG but I'd expect production for US destined GX's to shift to the higher optioned trims OT+, Luxury, Luxury + as there's more margin to absorb the tariffs and many more GX's getting port installed options.
Just a WAG but I'd expect production for US destined GX's to shift to the higher optioned trims OT+, Luxury, Luxury + as there's more margin to absorb the tariffs and many more GX's getting port installed options.
I think that is a good guess. Deliver higher trims to the US and lower trims to Canada. I wonder how different a vehicle needs to be for the Canadian vs. US markets and when those decisions in the build process need to be made.
GX550 Forum Photos
GX550 Forum Photos
