Donald Trump imposed 25 percent tariffs on all imported vehicles (with some potential exceptions). The primary impact most analysts outside the administration are expecting is that cars will become more expensive. We have already seen some major manufacturers react by increasing prices.
Subaru has not yet committed to raising prices in response to the tariffs. However, according to a letter leaked to retailers, the brand has suggested that price increases may be coming soon.
Key Takeaways
- Donald Trump imposed 25 percent tariffs on imports
- A Subaru leak says the brand cannot protect current pricing due to tariffs
- Subaru does build a lot of cars in America
- But its super-affordable cars and sports cars are now under threat
- And Subaru may need to shift future EV production to the U.S.
Subaru Reportedly Informed Dealers That Current Pricing “Cannot Be Protected”
The email — first spotted by CarBuzz — is from Subaru VP of Vehicle Planning and Logistics Lisa Quan to Subaru retailers. It asserts that because of the tariff threat, “current vehicle pricing cannot be protected and may be subject to change” after April 2, 2025.
Note that the email is dated March 20, 2025. So, it was a pre-emptive response to the threat of tariffs rather than the firm 25 percent tariff for Japanese automobiles announced afterward. A Subaru spokesperson declined to comment on the email and future pricing plans.
Subaru Does Build A Lot Of Its Core Lineup In America
No manufacturers will be unscathed by the tariffs. However, Subaru should be relatively well off compared to its more exposed competitors. Subaru builds the Outback, Ascent, and 2.5-liter Crosstrek SUVs in Indiana. Subaru also had plans to move production of its other volume seller, the Forester crossover, to Indiana later this year, with the Legacy sedan leaving the lineup. That should protect a lot of the core lineup.
But despite that relative insulation, prolonged tariffs may force Subaru into some tough decisions with current products. Subaru is a value brand. Any price increases affect the value the brand can provide. And Subaru depends on delivering that value in America, where it sells most of its cars.
TopSpeed’s Take
Prolonged tariffs could put current products under threat. Subaru’s affordable, $25,000-ish models like the lower-trim Crosstreks and the Impreza may become too expensive to import. Both Subaru sports cars, the BRZ coupe and the WRX sedan, suffered greater than 20 percent year-over-year sales declines in 2024, despite recently updated models. They may become too expensive to import, too. If the tariffs stick as constituted, we could see an all-SUV Subaru lineup and an all-$30,000-plus lineup.
Tariffs could also affect future Subaru product plans. Subaru is reportedly building a three-row EV with Toyota in America. But the Solterra is built in Japan. Expanded Japanese production facilities were a key plank for Subaru’s future EV effort.
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