If you watch any commercials on TV or YouTube, you would know that ” love makes a Subaru, a Subaru.”
American car buyers can’t get enough of the Japanese brand’s Symmetrical all-wheel-drive vehicles.
In fact, data from Consumer Reports shows that the constellation brand is at the top spot in the independent product testers’ annual list of the year’s most reliable automakers, dethroning a years-long reign of Toyota and its luxury arm, Lexus.
However, as much as these vehicles are hot commodities, Subaru faces new challenges as it builds on its reputation for quality and all-wheel drive performance.
Tariffs, it’s what’s going to make Subarus more expensive
According to a new letter, Subaru of America Vehicle Planning and Logistics VP Lisa Quan warned that impending trade policy could affect the popular automaker, its dealers, and its customers.
In the letter addressed to dealers dated March 20, 2025, the executive warned that the automaker has been “actively accessing the potential effects of tariffs” on the company, noting that any Trump administration policy would raise the automaker’s cost of doing business in the United States.
Explicitly, they mention that due to “business uncertainties related to auto industry tariffs,” the current prices of vehicles “cannot be protected and may be subject to change” after April 2, 2025.
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In essence, this means that Subaru cannot guarantee the current price of certain models or that the prices dealers pay for cars coming out of the factory may be adjusted to absorb the tariffs, which would eventually be passed onto the consumer.
This letter predates President Trump’s latest moves regarding automotive imports. However, it shows that Subaru was in tune with the industry’s working conditions.
In the Oval Office on the afternoon of March 26, Trump announced a 25% tariff on all imported vehicles and parts that would begin on April 2. In a recent interview with NBC News, he said he “couldn’t care less” if automakers raise their prices, adding that consumers will seek out American-made cars in response.
“No, I couldn’t care less, because if the prices on foreign cars go up, [Americans are] going to buy American cars,” he said.
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Subaru is in a precarious place regarding the tariff situation.
According to its own figures, 70% of Subaru’s global sales come from the United States. However, half of the cars it ships to the States are brought over from its factories in Japan. In 2024, it shipped over 328,064 cars.
The Japanese manufacturer has been making some of its popular models in Indiana since 1987. Today, the Ascent, Crosstrek, and Outback are made stateside. However, some vehicles, like the BRZ sports car and its bestselling Forester, are made in Japan.
In a December 2024 media roundtable, Subaru CEO Atsushi Osaki hinted that the automaker may get creative if President Trump gets his way.
“Tariffs on our exports from Japan have a huge impact on us,” Osaki said. “We are considering possible measures to respond to the proposed tariffs. One of the several options we are considering is to increase production capacity at the Indiana plant in the U.S.”
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