Will Subaru Be Affected By Tariffs Imposed By President Trump?

President Trump has made tariffs a big part of the economic agenda of his second administration. However, these proposed tariffs have been constantly in flux, as the White House has shown a willingness to change the terms or postpone certain tariffs on a dime. This has made it difficult to predict just how these levies will affect consumer prices — some of which could be thousands of dollars higher when it comes to foreign-built vehicles. The car brands likely to become more expensive because of tariffs include domestic ones as well, since many automotive factories are located abroad or utilize parts that are built outside our borders.

With this in mind, if you're wondering if Subaru's prices will be affected by President Trump's tariffs, the short answer is — maybe. Currently, the federal government plans to initiate a 25% tariff on America's closest neighbors, Mexico and Canada. The Trump Administration previously paused this tariff after the automotive industry raised concerns, but it is scheduled to resume after April 2. Subaru does not sell cars made in Canada, Mexico, or China, but does import about half of its cars sold in North America from Japan.

Still, many Subarus are made in America, as the automaker has a manufacturing facility in Lafayette, Indiana. Subarus built in this U.S. factory include the Crosstrek, Legacy, Ascent, and the Subaru Outback, which SlashGear recently reviewed and called "a bargain." However, some of the parts used in these American-made Subarus are from Canada, which makes certain models subject to Trump's tariffs. As a result, Subaru has not ruled out the possibility of price increases for its vehicles.

Since the Trump Administration has paused or altered the terms of proposed tariffs more than once, automakers have been hesitant to commit to any sticker price changes. After all, these price changes could both scare away customers and worry shareholders. Even though the tariff will resume April 2, for example, BMW has committed to preserve its consumer prices until at least May 1.

Subaru, on the other hand, is openly admitting that it may not be able to hold prices at its current level if a 25% tariff is instituted on eligible models. While it hasn't yet said it would pass additional costs onto customers, the automaker is one of the few so far to outright say that its current vehicle pricing "may be subject to change." 

Subaru of America confirmed this by sending a bulletin to its retailers, which publications like CarBuzz have received access to. Subaru says that it "has been actively assessing the potential effects of tariffs on our business. Tariffs inevitably increase the cost of doing business ... All Subaru stakeholders are closely monitoring this topic to ensure informed business decisions are made and to maintain Subaru's competitive market position. Rest assured we will be thoughtful in our reaction to tariffs."

Potential price increases could take effect as soon as Trump's tariff resumes on April 2. Subaru could decide to hold off on price hikes right away though as it figures out its response to "uncertain business conditions." Either way, if you were planning on buying a Subaru, you may want to do so in the next few days.