The redesigned model was expected to be imported from Canada and Japan, but that plan could change
- The next Toyota RAV4 was initially planned for import from Canada and Japan.
- A steep 25 percent tariff has Toyota considering a shift to US-based production.
- If plans are approved, RAV4 production could begin in Kentucky as early as 2027.
In a stunning upset, the Toyota RAV4 outsold the Ford F-150 last year to become the best-selling vehicle in America. Now, thanks to Trump’s tariffs, production could remain in the United States.
While the current RAV4 Hybrid is built in Kentucky, Toyota is working on a redesigned crossover and it’s expected to debut later this year. However, when it launches, it will reportedly be imported from Canada and Japan.
More: 2026 Toyota RAV4 Spied In America, Could Go Hybrid-Only
That’s a big problem thanks to Trump’s trade war and Reuters cites three insiders as saying Toyota is reconsidering that plan. Now, the company is said to be eyeing some U.S. production of the six-generation RAV4.
This could once again occur at Toyota Motor Manufacturing Kentucky and, if approved, production could begin as early as 2027. Toyota told the publication they wouldn’t comment on “speculation,” but said they’re always working to improve manufacturing to better serve customers and employees.
While the 25% tariff on automotive imports gives Toyota a lot of incentive to build the RAV4 in America, it isn’t the only factor at play. In fact, one of the biggest motivations appears to be higher demand than expected supply.
RAV4 sales surged 9.3% last year to 475,193 units and it appears the company is expecting even greater success with the redesigned model. If that occurs, Canadian and Japanese production might not be enough to fill America’s insatiable appetite for crossovers. On top of that, US production also helps to minimize impacts of fluctuations in the yen.
2026 Toyota RAV4
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Toyota has been tight-lipped about the next RAV4, but previous spy photos have shown the crossover will have an all-new front end that takes cues from the latest Camry. It features a distinctive mesh grille, vertical air curtains, and C-shaped headlights that are connected by a prominent bar.
The rest of the design is more evolutionary, but the crossover adopts a taller beltline, streamlined bodywork, and more angular cladding. There are also new taillights as well as an exhaust that has been tucked out of the way.
Expected to ride on the familiar TNGA platform, the 2026 RAV4 could go hybrid-only. This remains to be seen, but the company has been moving in that direction and a number of models – such as the Camry and Sienna – are offered exclusively with hybrid power.
This means the model might have a hybridized 2.5-liter four-cylinder that produces a combined output of 225 hp (168 kW / 228 PS). The all-wheel drive variant could add a rear-mounted motor that provides all-weather traction as well as an increased output of 232 hp (173 kW / 235 PS).
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