Toyota May Expand RAV4 Production in Kentucky

Toyota is reconsidering its production strategy for the next-generation RAV4 SUV due to the 25% tariffs imposed by the Trump administration on imported vehicles and higher-than-expected U.S. demand, with the RAV4 now the best-selling vehicle in America. Initially, Toyota planned to import the redesigned RAV4 from Canada and Japan, but is now seriously considering resuming or expanding production at its Kentucky plant, potentially starting in 2027. The company has not finalized or officially announced any changes but is reviewing its manufacturing operations to serve customers and maintain stable employment. Any shift in production would require significant time and resources to retool facilities and adjust supply chains. Toyota has indicated it will strive to avoid raising prices for consumers by reducing fixed costs, despite ongoing trade and cost pressures. Production levels in Canada are expected to be maintained.