
Yes, most Toyota cars imported into the United States are subject to tariffs. The standard tariff rate for passenger cars is 2.5%, a rate applied to vehicles imported from most countries, including Japan. However, a critical exception exists for Toyota trucks and SUVs, which fall under the "Chicken Tax," a 25% tariff on imported light trucks. This has heavily influenced Toyota's decision to manufacture many of its popular trucks and SUVs, like the Tundra and Highlander, within the U.S.
The specific tariff depends on the vehicle's country of origin, not just the brand. While many Toyotas sold in America are now built in North American plants (in Kentucky, Texas, Alabama, and Mississippi), those imported from Japan or other locations incur the import duty. This cost is typically factored into the vehicle's final Manufacturer's Suggested Retail Price (MSRP).
| Vehicle Model | Primary Production Location | Applicable U.S. Import Tariff |
|---|---|---|
| Toyota Camry | Georgetown, Kentucky, USA | 0% (Domestic Production) |
| Toyota Corolla | Mississippi, USA / Ontario, Canada | 0% (USMCA) |
| Toyota 4Runner | Tahara, Japan | 25% (Chicken Tax) |
| Toyota Land Cruiser | Yoshiwara, Japan | 2.5% (Passenger Car) |
| Toyota RAV4 | Ontario, Canada / Kentucky, USA | 0% (USMCA) |
| Toyota Tundra | San Antonio, Texas, USA | 0% (Domestic Production) |
| Toyota Sequoia | Princeton, Indiana, USA | 0% (Domestic Production) |
| Toyota Yaris Cross (if imported) | Japan | 2.5% (Passenger Car) |
Understanding these tariffs explains pricing strategies. For example, a Japanese-built 4Runner is significantly more expensive to import than a U.S.-built Highlander, influencing both the sticker price and the manufacturer's decision on where to build vehicles. The USMCA (United States-Mexico-Canada Agreement) also allows for tariff-free trade of vehicles meeting specific regional content rules, which is why models from Canada and Mexico are common.

When I was shopping for my Camry, I learned that the one built in Kentucky doesn't have an import tax. But if I wanted a Supra or a Land Cruiser that comes from Japan, the price includes a small 2.5% tariff. It's not a huge amount on the sticker price, but it's there. The real shock is with trucks—if Toyota tried to bring in a pickup from overseas, it would get hit with a massive 25% tax, which is why they build all their big trucks here.

It's all about the "Chicken Tax," a 25% tariff from the 1960s on imported trucks. That's the real story. To avoid it, Toyota had to build factories in Texas and Indiana for the Tundra and Sequoia. For cars, the 2.5% tariff is minor. The strategy is simple: build your high-volume sellers in North America to avoid tariffs completely. This trade policy directly shaped the map of where your Toyota is made.

Look at the window sticker on any new Toyota. It lists the final assembly point. If it says Japan, you're paying a tariff. If it says the USA, Canada, or Mexico (under USMCA rules), you're not. This is why you see so many RAV4s from Canada and Camrys from Kentucky. The tariff isn't a separate line item you pay; it's baked into the MSRP by the manufacturer. So, you are paying it, just indirectly.


