Because Of Trump's Tariff, Toyota Considers Retailing RAV4 In The US

Toyota RAV4. (Doc. Global Toyota)

JAKARTA - The vehicle import rate policy set by the President of the United States (US), Donald Trump, has forced a number of automotive manufacturers to rack their brains in order to reduce costs and stabilize sales in the country.

One of the manufacturers affected by this regulation, such as Toyota, is considering reproducing the latest RAV4 at the Kentucky factory, USA in the near future.

Reporting from Reuters written by Motor1, Tuesday, April 22, Toyota previously confirmed that it would stop production from RAV4 at the Kentucky factory and transfer it to factories in Canada and Japan.

According to several sources, this well-known Japanese manufacturer canceled the move and will restart producing the SUV at the facility in order to reduce the impact of the 25 percent tariff on imported vehicles.

The report says the scheme has not reached the final stages and it is rumored that the changes to the plan will take considerable time and capital. If the production is approved, the assembly will begin in 2027.

Meanwhile, Toyota still declined to comment on the RAV4 assembly plan.

Apart from Toyota, another manufacturer that is considering assembling vehicles in Uncle Sam's country is Volvo. Their new CEO, Hakan Samuelsson, who said it took his party two years to increase production lines in Uncle Sam's country.

Samuelsson also said that this tariff indicated that his party could not sell European homemade cars to the US market for a long time. What's more, Volvo also cannot import Chinese-made cars into the market because the rates set are much higher.

Meanwhile, a Volvo spokesperson is still reluctant to give a response to this matter. However, it would certainly be very interesting if the manufacturer dared to invest in the US to assemble vehicles in the future.