Toyota Motor announced it will raise prices for some of its vehicles sold in the United States by an average of $270 starting July 1, 2025. The price increase comes as the company can no longer absorb the cost increases related to the 25% tariffs imposed by former President Donald Trump on imported cars and parts. Toyota has clarified that the price adjustment is part of its annual pricing strategy, reflecting market conditions, competitor actions, and rising costs, rather than a direct response to tariffs. Despite these headwinds, Toyota reported record global sales and production in the first half of 2025, driven by strong demand for hybrid vehicles in core markets. In June 2025, Toyota's exports to the U.S. rose 16% to 52,745 vehicles, indicating continued growth in the American market. Meanwhile, broader U.S. auto market trends show increased vehicle payments, with new vehicle spending expected to reach a record $50 billion in July 2025, and rising delinquencies on auto loans among higher-income Americans. Negative equity in trade-ins has also reached its highest level since 2021, with 26.6% of trade-ins underwater and an average upside-down loan amount of approximately $6,750.