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In light of President Trump's tariffs, Toyota is contemplating the possibility of producing its next-generation RAV4 in the United States. Initially, the model was slated for manufacturing in Canada and Japan, with plans to export to the U.S. However, the new strategy could see production shifted to Toyota's Kentucky plant. Current RAV4s are manufactured in Kentucky, Canada, and Japan, but adjustments to the Kentucky facility may take until 2027 to accomplish.
The RAV4 has become a crucial model for Toyota, having surpassed the Ford F-150 in sales last year, making it the best-selling vehicle in the U.S. In a related move, Mazda has halted shipments of its CX-50 to Canada due to retaliatory tariffs from the Canadian government, affecting a significant portion of its sales.