Toyota Motor (TYO:7203) is evaluating producing the next-generation RAV4 SUV in the US, joining other automakers in rethinking supply chains to mitigate the impact of tariffs on imported vehicles, according to Reuters on Monday, citing unnamed sources.
The current RAV4 is made in Kentucky, Canada, and Japan, but Toyota is now considering adding Kentucky production for the new model due to expected high demand, said the news wire.
US production could help Toyota reduce exposure to President Trump's 25% auto tariffs and currency fluctuations, according to the report.
The company plans to unveil the redesigned 2026 RAV4 later this year, with a global rollout to follow, though US launch timing remains unannounced, it added.
Toyota Motor did not respond to MTNewswire's queries at press time.
Toyota Motor's shares shed nearly 3% at market close.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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