Toyota Could Raise Prices Three Times in 2026, Executive Says

Toyota may raise car prices three times in 2026, Toyota North America executive Andrew Gilleland says, as tariffs and USMCA uncertainty add pressure.

Toyota may be heading into a difficult 2026, and the company is already warning that its vehicles could become more expensive more often than usual. According to Toyota Motor North America, the brand is considering three potential price increases over the course of 2026 instead of the typical two. The reason is an unstable trade environment, shaped by tariff pressure and uncertainty surrounding the upcoming review of the USMCA agreement between the United States, Canada, and Mexico.

The comments came from Andrew Gilleland, senior vice president of automotive operations at Toyota Motor North America. He said Toyota is now operating in price territory he has never seen in more than three decades with the company, with some models approaching the $50,000 mark — a level that begins to look uncomfortably close to the premium segment. That shift is especially concerning for a brand long associated with value and affordability.

The central challenge, Gilleland explained, is determining how long Toyota can continue absorbing rising costs internally. He noted that Toyota is trying to prevent tariff-related expenses from being passed directly to customers, but admitted the strategy has clear limits. He described the situation as a kind of endurance test: how long can the automaker hold out before price increases become unavoidable?

Tariffs remain a key source of pressure. U.S. tariffs on Japanese vehicles were adjusted to 15%, and even at that reduced level they still affect Toyota’s bottom line — particularly for models built in Japan. One example highlighted is the Toyota 4Runner, which Toyota has confirmed is produced at the Tahara plant in Japan. The Land Cruiser is also built in Japan, with Toyota stating it is produced at the Tahara and Hino facilities.

Another major variable is the upcoming USMCA review, which is set to begin on July 1, 2026. The outcome could have direct consequences for supply chains, production costs, and ultimately vehicle pricing across North America. While former President Donald Trump has reportedly dismissed the agreement as irrelevant, former Congressman Kevin Brady has argued that USMCA remains a critical tool for North America to maintain its position against China’s growing influence in the global auto industry.

Despite the uncertainty, Toyota does not plan to rush into aggressive pricing decisions. Gilleland emphasized that the company intends to stick to its long-standing “follower” strategy, closely tracking market behavior and competitor pricing before making moves. Toyota wants to avoid being the first to lead major price shifts, and it also wants to prevent confusion at dealerships, where vehicles built at different times could sit side by side with different price tags.

If Toyota does implement three price hikes in 2026, the biggest impact could fall on its most affordable trims and high-volume models. Toyota currently holds a pricing advantage over rivals like Honda, with vehicles such as the Corolla, RAV4 Hybrid, and Camry Hybrid often undercutting comparable alternatives. Multiple increases over a single year could weaken that edge — and potentially reshape Toyota’s value-driven image in the marketplace.

No final pricing decision has been announced yet, but Toyota’s message is clear: 2026 may be a year in which even a brand built on affordability is forced to navigate the uncomfortable reality of rising costs driven by trade policy and economic uncertainty.