Toyota $7203.T is revisiting its manufacturing strategy for the wildly popular RAV4 SUV, reflecting broader shifts in global supply chains. The Japanese automotive giant is now considering localizing production of the next-generation RAV4 in the United States—a move designed to offset the risks stemming from US auto import tariffs and currency fluctuations.

Volkswagen AG, one of the largest automakers in Europe, has announced the implementation of additional import tariffs on its vehicles supplied to the United States. This move indicates that the 25-percent automotive tariffs imposed during Donald Trump's administration are beginning to have a significant impact on the company. The situation warrants careful analysis, as it could seriously affect Volkswagen's market position and stock value.