AUTONEWS
Why is the Toyota Corolla the anti-tariff car in the US?
With the imminent entry into force of the 25% tariffs on imported vehicles, announced by former President Donald Trump, the US automotive market is on alert.
Starting April 2, the prices of new and used cars are expected to increase significantly — regardless of where the car was manufactured.
Amid the economic turmoil, a discreet and already well-known model may emerge as a safe haven for consumers: the Toyota Corolla.
According to a Reuters survey, only 16 models currently sold in the US have an average price below $30,000.
And of these, only one is manufactured within the US: the Toyota Corolla sedan, assembled at the Blue Springs plant in the state of Mississippi since its inauguration in 2011.
This national origin may protect the Corolla — at least partially — from the approaching tariff storm.
In a statement released recently, Toyota said it does not intend to increase Corolla prices due to the new tariffs. The statement sounds like a relief for those looking for an affordable car, but experts warn that, in practice, the promise may be difficult to fulfill.
This is because the impact of the tariffs is not limited to finished vehicles, but also to key parts and components such as engines, transmissions, electrical systems and powertrain assemblies.
The scenario is even more complex when you consider that practically no modern car is 100% produced in a single country. Even vehicles assembled in the US often rely on components from different parts of the world.
As a result, logistics and production costs are expected to rise for all automakers — and, inevitably, part of this burden will be passed on to consumers.
According to estimates from Cox Automotive, cars manufactured in the US could see an average increase of US$3,000, while imported cars are expected to rise up to US$6,000.
This forecast indicates that buyers of popular cars, who would normally invest in a brand new car, may migrate to the used car market. This, in turn, would increase the demand for used cars and trigger a new round of price increases — a domino effect that could affect the market as a whole. The Toyota Corolla, on the other hand, appears to be an exception in this wave of uncertainty. In addition to being one of the best-selling models in the world, it is known for its mechanical reliability, cost-benefit and easy maintenance.
These attributes, combined with domestic manufacturing and the promise of keeping prices stable, could consolidate it as the main choice among consumers seeking savings and predictability. If the tariffs really do come into effect as announced, the Corolla could emerge as the last bastion of affordable cars in the United States — and its demand could possibly grow even more in the coming months. At a time when everything points to rising prices, it could be one of the few certainties on the uncertain horizon of the American automotive industry.
What Toyota said... Toyota will continue to operate as it has always operated and focus on reducing fixed costs, the company said on Monday, without expressing any intention to raise prices in response to U.S. President Donald Trump's tariffs.
Japanese media reported on Monday that the world's largest automaker has no plans to raise prices on vehicles sold in the United States for now, even as Trump imposes 25 percent tariffs on global auto imports that take effect on April 3.
"While we closely monitor developments from U.S. authorities, including tariffs, we will continue to work to reduce fixed costs and maintain our current operations for the time being," a Toyota spokesman said in a statement. In 2024, the U.S. was Toyota's largest global market, with a volume of 2.3 million vehicles.
Mundoquatrorodas