Japan's leading automaker Toyota Motor (NYSE: TM) has announced that it will raise prices on some of its US models by an average of $270 starting in July 2025.
The move comes after US President Donald Trump announced a 25% tariff on imported cars and parts, forcing many manufacturers to reassess their pricing strategies. However, Toyota denied that the new tariff was the direct cause of the price increase.
"This price adjustment is part of our regular price review and does not reflect the impact of tariffs," said Toyota spokesman Nobu Sunaga.
📈 Lexus Is Not Out Of The List
Not only popular models, the luxury Lexus line - Toyota's subsidiary brand - will also witness an average increase of about $208/car since July.
🇺🇸 Connection With New US Tax Policy
Although Toyota emphasized that the price increase is not directly related to taxes, the market sees this as an indirect consequence of the Trump administration's new trade policy, especially for companies importing cars from Asia.
The auto industry has begun to feel pressure from rising component costs, while some companies such as Ford and GM are also said to be considering similar price adjustments in the near future.
📊 Investment Perspective: Is TM Still "Attractive"?
The news of increasing car prices quickly brought TM stock code back into the spotlight of investors. InvestingPro's stock analysis algorithms are closely monitoring the situation, with the big question being: Is TM currently undervalued relative to its growth potential?
With many growth stocks overvalued, TM could be the next hidden gem, especially as demand for electric and hybrid vehicles continues to expand.
🔍 Conclusion: Normal Correction or Market Signal?
While Toyota insists that this is just a routine correction, observers say supply chain pressures, shipping costs, and the global trade environment have forced major manufacturers to reposition their pricing strategies.
If import tariffs remain in place or increase further, auto prices in the US could continue to climb, affecting consumers and the market structure in the coming period.