Tariffs On Products From Mexico [⚠️ ADMIN WARNING: NO POLITICS, ONLY POLICY DISCUSSIONS]

[TacoFreak]

People might want to revisit the title of this thread before @Administrator closes it down for good.

The merits or disadvantages of tariffs should not be the point on a truck forum, just how it affects Tacomas.

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[BearTacos]

CBS news is reporting that costs for a Large SUV will rise by $9000
Recession will follow these tariffs

I would go out on a limb and say that people buying things that they cant afford, living on credit and lack of savings would be more likely a cause for recession than a midsized pickup truck that probably only 5% of owners " needed" to buy. As much of my aftermarket parts that I can find will be made in the USA. Cali Raised rock sliders, weathertech floor mats, weathergiard tool boxes, BFG K03 tires etc. The fact that these products will become more conpetive to the knockoffs is only a bonus to the men and woman that are employed at these outfits. 9k on an SUV is really only 7-10% of the total cost. That is alot of money but saying 9k makes it seem worse than it is. I've been pricing Sequois, Land Cruiser, Expeditions and if I buy new ( which i probably wont) it's sad to say that they are already 90k. I would think the dealers would cut the price with discounts to offset the lack of sales and me the consumer will end up paying the exact same as if it was still flying off the lot pre tariff.

 

[wire4money]

Heck no! lol, but everything is relative, right? It's clear that Toyota believes it's priced right, but with all the discounts needed to sell them, the market doesn't agree.

But, at a different price point, they could be manufactured in the USA, like they used to be. That's the type of action tariff's support.

Of course, Lil K would make a sky is falling video about the price of a stick of gum...

The discounts are not because they don’t sell. We are just back to the way it used to be. I got a larger discount on my 2019 Tacoma than I did my 2024.

 

[CrispyTacoLover]

The tariff on new imported Tacomas went into effect today, correct? I’m curious what dealers are doing.

 

[TacoFreak]

The tariff on new imported Tacomas went into effect today, correct? I’m curious what dealers are doing.

Nothing yet AFAIK.

Toyota sets the MSRP and dealers work from that. If or when tariffs affect prices I think it will first come from Toyota in the form of increased MSRPs. If what dealers pay is the Toyota wholesale price plus the tariff then I think dealers will pass it straight through to the buyers.

All of this should become clearer as we move forward in this situation, because there are many unanswered questions at this point.

 

[CrispyTacoLover]

Nothing yet AFAIK.

Toyota sets the MSRP and dealers work from that. If or when tariffs affect prices I think it will first come from Toyota in the form of increased MSRPs. If what dealers pay is the Toyota wholesale price plus the tariff then I think dealers will pass it straight through to the buyers.

All of this should become clearer as we move forward in this situation, because there are many unanswered questions at this point.

I’m a little surprised we haven’t seen more info from Toyota.

 

[SilverSurfer]

Sure glad I pulled the trigger last Nov.…

 

[BearTacos]

I’m a little surprised we haven’t seen more info from Toyota.

I doubt that any business wants to promote the fact that they are raising prices. I'd bet they are banking on it getting solved by all parties involved and the amount of vehicles and products affected is neglible in terms of their total sales. I know if I told Joe homeowner that his price is going up because my new bulldozer came from Mexico he wouldn't care about anything other than me raising the price. I'd just raise the price and not give a reason why. He probably wouldn't make a big deal out of it or give it much thought.

 

[mawaukee]

Thanks everyone for your responses.

First off, my dealer called me today and told me that *if* the Tariffs stick and prices have to go up, they will do it across all models regardless of where they're made. So the most we'd see is a couple hundred dollar increase.

Secondly, I just saw this buried in a news article about how the tariffs might be walked back today:

from cnbc:

Trump may exclude auto industry from tariffs on Canada and Mexico, Lutnick says

President Donald Trump could exclude some sectors from the 25% tariffs imposed on Canada and Mexico, Commerce Secretary Howard Lutnick told Bloomberg Television in an interview.
“The president gets to make the decision,” Lutnick said. “There will be some categories left out. It could well be autos, could be others as well.”
Lutnick said Trump is considering excluding sectors that are compliant with the United States-Mexico-Canada trade agreement’s content provisions
“My understanding is the Big Three say they produce cars that are compliant under USMCA, which means they have sufficient U.S content in them to be part of the USMCA agreement,” Lutnick said of Ford, General Motors and Stellantis. “That’s part of our discussion and the president’s really thinking about that.”
Lutnick said he expects the White House will make an announcement this afternoon and that the changes could be “somewhere in the middle” rather than a complete rollback.

 

[TacoFreak]

Thanks for that update @mawaukee - I think that is what a lot of people are hoping for. Cars and trucks are so expensive anymore, that a small increase would hardly be noticed.

It could just apply to US car companies though, and not to foreign brands. I guess it is wait and see time.

 

[mawaukee]

One other thing I forgot to point out. I'm well versed in tariffs because I pay them directly all the time. I own a business that manufactures in the US, but out of necessity we have to buy a few components from China and pay tariffs on them (there are no American factories that make these components, so I'm not sure where I'm expected to get them?)

Anyway, the tariffs are charged on the manufacturing cost. So if a widget costs $100 at retail, and it cost the manufacturer $50 in Mexico, the tariff is on the $50 cost, making the tariff $12.40, not $25.

Some companies take it a step further and argue that the $50 cost of an item includes $20 worth of labor which is not subject to tariff, making the real tariff-able cost closer to $30, or $7.50 per widget.

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