Toyota RAV4 might keep moving to Kentucky to avoid Trump tariffs
The Toyota RAV4 is popular. Really popular. So popular, in fact, that it’s the first American-market vehicle to outsell the Ford F-150 in decades. But with Donald Trump’s latest tariffs threatening the best-selling small SUV, Toyota is considering shifting some of its RAV4 production efforts to its Georgetown plant.
Toyota may move more of its RAV4 production to Kentucky to sidestep President Trump’s tariffs
Toyota cracked into the ground north of Lexington to build its Georgetown, Kentucky, factory in 1986. Now, over 14 million vehicles and nearly 40 years later, Toyota Motor Manufacturing Kentucky (TMMK) might need to make room for a larger share of the brand’s RAV4 production. Currently, Toyota builds the RAV4 Hybrid and Camry Hybrid at the location.
Sources within the Japanese automotive manufacturer said that the brand may move more of its RAV4 production efforts to Georgetown soon. The reason? To maneuver around the latest of Donald Trump’s tariffs. The president’s 25% duties targeting foreign-built cars and parts are a hefty challenge to automakers’ bottom lines. It’s especially harmful considering how many RAV4s roll off the line outside of the United States.
As of now, Toyota builds RAV4 variants in Canada and Japan in addition to the Bluegrass State. But shifting some of its small SUV manufacturing to the United States could prevent substantial tariffs from cutting into the revenue from the brand’s best-selling vehicle. In the meantime, Toyota itself won’t confirm the move.
“We continually study ways to improve our manufacturing efficiencies to best serve our customers and provide stable employment for our team members,” Toyota said to the Lexington Herald Leader. “We have nothing to announce at this time and will not comment on speculation.
Now, TMMK is not a small operation as it is. The nine million-square-foot facility is home to around 10,000 employees. Nearly 77,500 RAV4 Hybrids rolled off the line at the plant last year. It’s a vital part of Kentucky’s manufacturing and labor landscape. While it’s unclear whether Toyota will add jobs to accomplish the shift, it stands to reason that additional hands would be necessary to build additional RAV4s in Georgetown.
