Japanese car giant Subaru hikes prices due to tariffs
Subaru is bumping up prices for American cars. The company said customers will see price increased between $750 and $2,055, depending on the trim. New pricing takes effect starting in June. The iconic Japanese automaker didn't explicitly blame prices with the pricing change, but the timing is obvious.
Subaru said in a statement that the increases were made in response to 'current market conditions,' per Reuters . The hikes come as more car companies pass rising costs onto consumers, thanks in part to President Donald Trump's 25 percent tariffs on imported vehicles and auto parts. Those tariffs are now rippling through the supply chain — even for cars built in the US, which often rely on global parts.
Some of America's biggest car companies have said they expect to slash billions of dollars from their profits as they pay the import levies. GM said it expects to pay between $4 billion and $5 billion annually. Ford, which makes 80 percent of its vehicles in the US, expects to get a $2.5 billion tax. For months, consumer advocates have been warning DailyMail.com that the tariffs were expected to increase vehicle costs and insurance premiums .
And companies are just starting to announce those increased prices. But they're attempting to minimize the ire from the Trump administration. 'The changes were made to offset increased costs while maintaining a solid value proposition for the customer,' the company said in a statement. 'Subaru pricing is not based on the country of origin of its products.'
In April, Subaru started making some manufacturing changes because of the tariffs. The company confirmed that it was hastening decisions to remove the Outback wagon's production from its Indiana plant. For years, the company had relied on free trade agreements to sell the American-produced wagons in other countries, including Canada.
But as Trump announced tariffs and Canada retaliated, the company decided to ramp production of the car at its Japanese plants instead . The company has maintained that it will continue to bring new cars to American dealerships. 'We are dedicated to offering our American customers a wide range of options to meet their evolving needs,' Subaru's CEO, Atsushi Osaki, said during this year's New York International Auto Show.
At the show, the company unveiled a new, boxy design for the Outback and made the world debut for the Trailseeker EV. But those products are likely to be pricier if the Trump administration decides to keep its current slate of tariffs. Subaru isn't alone. Earlier this month, Ford announced that it increased prices on the Mustang Mach-E, Bronco Sport, and Maverick pickup truck.
The three cars, which are all assembled in a Mexican factory, are some of the brand's best-selling cars. Volkswagen also announced that it would print the tariff fee on all new vehicle stickers . That means consumers will be able to read just how much the tariff will cost, just like they can see the cost of add-ons like a sunroof or power seats.
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Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... It was surely the biggest bromance of them all: Elon Musk, the world's richest human, and Donald Trump, the world's most powerful. Together, what couldn't they have achieved? However, just 136 days after they stormed into the White House together, intent on nothing less than a revolution in government, the two men descended into slinging petty insults at each other like toddlers in a sandpit. Advertisement Hide Ad Advertisement Hide Ad Donald Trump and Elon Musk pictured at the White House in March (Picture: Roberto Schmidt) | AFP via Getty Images 'Without me, Trump would have lost the election. Such ingratitude,' declared Baby Musk on his social media foghorn, X, formerly known as Twitter. From his 'Truth Social' trumpet, Toddler Trump declared Musk had been 'wearing thin', so he had asked him to leave. 'I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted... and he just went CRAZY!'
