Subaru of America increases vehicle prices, citing market conditions
Subaru of America is hiking prices on several models, the company said on Monday, the latest automaker to pass along cost increases to consumers as their expenses rise from the Trump administration's tariffs.
Subaru said in a statement that the increases were made in response to "current market conditions," without citing tariffs or specific price actions.
"The changes were made to offset increased costs while maintaining a solid value proposition for the customer. Subaru pricing is not based on the country of origin of its products," the company said in a statement.
Car company executives have recently shared with investors how much the levies will cost them this year, with some in Detroit saying they were expected to add up to $5 billion. While there has been some relief on duties imposed on foreign auto parts, U.S. President Donald Trump has maintained a 25% tariff on the 8 million vehicles the U.S. imports annually.
Ford Motor earlier this month raised prices on three models produced in Mexico by as much as $2,000, becoming one of the first major automakers to respond to Trump's tariffs.
The Subaru price increases will add between $750 and $2,055 to vehicles depending on the model and trim, according to a notice posted on a dealer website. The price increases are expected to hit vehicles on dealer lots starting in June, according to the notice.
Subaru imports 45% of its U.S.-sold vehicles, according to 2024 data from research firm S&P Global Mobility. Its affordable Forester model is one of a handful of lower-cost vehicles set to be most affected by tariffs, according to Cox Automotive executive analyst Erin Keating. The SUV is getting a price hike of between $1,075 and $1,600 depending on the trim, the dealer notice said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Newsweek
21 minutes ago
- Newsweek
Parts of Trump Coalition 'Disillusioned' as Musk Rips 'Big, Beautiful Bill'
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Billionaire Elon Musk sharply rebuked President Donald Trump's "big, beautiful bill" this week, sparking both praise and backlash. An analyst told Newsweek that a slice of Trump's coalition is now getting "disillusioned" by him, and Musk is the most recent example. Why It Matters Musk was chosen by Trump to lead the Department of Government Efficiency (DOGE) during the president's first few months of his second term in office. Since his January inauguration, Trump has enacted sweeping cuts across the federal bureaucracy, mainly through executive orders and the creation of DOGE. The SpaceX CEO pushed for DOGE to gain access to the most sensitive and confidential information about American taxpayers, leading to a slew of lawsuits. Musk has also faced fierce backlash amid his drastic cuts to the budget, including thousands of federal jobs, and the dismantling of entire agencies. Amid the uproar, Tesla cars and property have been targeted and torched across the United States as protesters demonstrated against Musk's appointment as an unelected official. Photo-illustration by Newsweek/Getty What To Know The reconciliation bill, or the "big, beautiful bill" as Trump calls it, is a key avenue for Republicans to push forward the White House agenda following widespread GOP election victories in November. Key GOP holdouts in the House and Senate have voiced opposition to the bill over fears of raising the national debt, among other concerns. In a post to X, formerly Twitter, on Tuesday, Musk ripped the piece of legislation, saying, "I'm sorry, but I just can't stand it anymore. This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong. You know it." The White House reacted to Musk's condemnation on Tuesday, as press secretary Karoline Leavitt said in part, "Look, the president already knows where Elon Musk stood on this bill. It doesn't change the president's opinion." In a new post to X on Wednesday, Musk doubled down: "A new spending bill should be drafted that doesn't massively grow the deficit and increase the debt ceiling by 5 TRILLION DOLLARS." The Republican infighting is a distinct turn from Musk's MAGA loyalty and near constant presence alongside the president during his second term. "Musk's attacking Trump's bill that the House passed highlights the conflict among Republicans, especially now in the Senate, over passage of this reconciliation bill purposefully designed to avoid needing 60 votes and a Democratic filibuster. If it does not pass the Senate or otherwise not make it to Trump's desk by the summer, it will at minimum greatly embarrass the Trump administration," Columbia political science professor Robert Y. Shapiro told Newsweek via email Tuesday. "This embarrassment also puts Republicans in the Senate and the House in a tough spot, since this could affect Republican control of the House and also even put control of the Senate in jeopardy. This is all currently the Senate responsibility. And Trump needs this control of Congress to pass legislation and to prevent a Democratic controlled House especially from starting investigations of his unconstitutional acts as president and also blatant corruption in using the presidency to enhance his family's and his wealth," Shapiro added. He also said that Musk's jab at the bill "may make this only marginally more difficult" for Trump, while noting that he still has his MAGA base backing him. On the other hand, D. Stephen Voss, political science professor at the University of Kentucky, told Newsweek via email, in part, on Wednesday: "Parts of the Trump coalition are becoming disillusioned with the way he's governing. Elon Musk's defection from the White House is just one high-profile example of the disillusionment with Trump being seen among right-leaning libertarian types, who are bothered by Trump's willingness to grow government and increase executive power." "But that's not the only slippage," Voss added. "Consider, for example, disillusionment with Trump being expressed by the Hispanic voters who put him over the top in 2024. As Trump's public support slips, that's going to turn into less Republican party unity in D.C. The increasingly noisy opposition to Trump might not stop him from getting some version of his omnibus budget bill, but either way, it will make it harder for him to govern in the months ahead." Tesla CEO Elon Musk and President Donald Trump field a question from reporters in the Oval Office of the White House on May 30 in Washington, D.C. (Photo by) Tesla CEO Elon Musk and President Donald Trump field a question from reporters in the Oval Office of the White House on May 30 in Washington, D.C. (Photo by) What People Are Saying Republican Representative Marjorie Taylor Greene of Georgia posted to X on Tuesday: "Do I like the price tag of the One Big Beautiful Bill? No. But we're still stuck with Biden's CR that funds tons of foreign aid and woke garbage at home and abroad. Passing the OBBB is a critical step toward delivering the America First MAGA mandate voters gave us in November." Greene added, "I'm focused on passing the @DOGE cuts that Elon and his team helped craft and I'm grateful he launched this effort." Republican Senator Mike Lee of Utah, responding to Musk on X Tuesday: "Federal spending has become excessive The resulting inflation harms Americans And weaponizes government The Senate can make this bill better It must now do so" Republican Senator Rand Paul of Kentucky, also on X Tuesday in response to Musk: "I agree with Elon. We have both seen the massive waste in government spending and we know another $5 trillion in debt is a huge mistake. We can and must do better." Trump, on Truth Social Tuesday: "Rand Paul has very little understanding of the BBB, especially the tremendous GROWTH that is coming. He loves voting "NO" on everything, he thinks it's good politics, but it's not. The BBB is a big WINNER!!!" What Happens Next Trump has handed down a deadline for Senate Republicans to get the bill passed and on his desk before July 4th. It is unclear if Republican senators will garner enough votes to get it done in roughly one month.
Yahoo
26 minutes ago
- Yahoo
Republican senators face Wall Street worries over megabill's retaliatory tax
Senate Republicans have a new headache as they wrangle President Donald Trump's megabill toward a final vote: panic on Wall Street over its proposed new retaliatory tax on certain foreign investment in the US. Corporate interests are pushing back against the bill's escalating taxes against foreign investors from countries that impose 'discriminatory' taxes on multinational business. The House included the retaliatory tax in its version of Trump's tax bill, but several Republican senators told Semafor they are weighing changes to make sure the provision doesn't stifle job creation in the US, especially in manufacturing. The House-passed tax was crafted in response to a global minimum tax plan from the Organization of Economic Cooperation and Development, which wants to stop multinational corporations from taking advantage of tax loopholes in jurisdictions where they operate. Trump has criticized that proposal, vowing countermeasures — and Republicans don't like the global tax, either. Still, some Republicans worry the new tax risks embroiling the US into a tit-for-tat tax war that causes blowback for companies trying to invest domestically. 'In terms of implementation, I'm going to have to get more comfortable with it. Going into it in its current form, I'm not comfortable,' Sen. Thom Tillis, R-N.C., a staunch ally of Wall Street who serves on the tax-writing Finance Committee, said in an interview. Tillis said the possible chill on foreign companies' investment in the United States is 'why we've got to look at it … we've got to be smart about that.' The wonky yet critical fight has bubbled up over the past week as investors pored over the House bill in anticipation of potential Senate amendments. In its most basic form, the retaliatory tax would top out at 20% on corporations and individuals headquartered in countries that impose taxes deemed unfair by the United States, including global minimum corporate taxes and digital service taxes. Senators are diving into the House-passed foreign tax language, referred to as 'Section 899″ in the bill, after investors started airing their worries. Some Republicans are inclined to agree with a Wall Street Journal editorial arguing that the proposal can succeed — if other countries back off a global tax framework and avoid retaliatory taxes. There are plenty of others arguing the opposite point, though. 'I am certainly hopeful that senators will recognize that this provision will not impact bureaucrats in London, England, or Paris, France. It's going to impact American workers in places like Paris, Ky., and London, Ohio,' said Jonathan Samford, who leads the Global Business Alliance. 'It is a punitive and discriminatory tax aimed at major US employers who are guilty of nothing more than being founded abroad.' Others urging the Senate to rethink the House approach include the American Enterprise Institute, which wrote a rebuttal to the WSJ that senators 'should be cautious about enacting broad, discriminatory taxes on foreign investment, regardless of their intent.' Business publications have written multiple stories in the past week highlighting alarmed investors. GOP senators said they could change the bill but are making no commitment yet. 'There are some issues that have been raised there and we are looking at it,' Senate Finance Chair Mike Crapo, R-Idaho, told Semafor. 'The issue has been raised, and we are evaluating.' Sen. James Lankford, R-Okla., said 'there's a lot of nervousness about how it could be used' and that while Republicans want to push back against the global tax plans, they also 'want to make sure there's not some unintended consequences.' There are a couple problems with removing the retaliatory tax section; among them, it raises $116 billion in revenue, which means removing it would blow a further hole in the deficit. Not to mention that the House likes it. Responding to the kerfuffle on Wall Street, Ways and Means Chair Jason Smith, R-Mo., said on Wednesday that the bill arms 'President Trump with retaliatory countermeasures' and urged the Senate to quickly 'pass this bill and protect Americans from economic bad actors around the world.' Because of those factors, several senators told Semafor they expect the provision to ultimately stay in, albeit perhaps with some tweaks. Sen. John Kennedy, R-La., said he expected the provision to survive the upper chamber because it prevents countries 'from supporting President Biden's global plan.' Republicans said the conference hasn't fully explored the issue yet, but that more and more people are talking about it in the Capitol. Many supporters of the retaliatory tax section say it's aimed at avoiding an escalating capital war with other countries rather than starting one. 'It's more to protect our guys from having to pay taxes unfairly in other countries,' said Sen. John Hoeven, R-N.D., adding that he, too, expects the provision to remain intact. We're saying, 'Hey, if you are in another country, you tax our companies, we're going to tax your companies.' So it's actually to prevent that.' Section 899 is one of the intra-GOP fights we'll be watching closely as the Senate draws closer to releasing its version of the megabill. The Wall Street freakout over the proposal hasn't been enough to totally derail it. Yet Crapo's comment that the committee is reviewing it means that it's not totally safe yet, either. Some analysts are calling Section 899 a 'revenge tax,' according to MarketWatch.
Yahoo
26 minutes ago
- Yahoo
Leaders of Canada and Mexico lash out at Trump steel tariff hike
The leaders of Canada and Mexico have criticised the latest hike in steel and aluminium tariffs under United States President Donald Trump, who increased import taxes on the metal from 25 to 50 percent. The international condemnation came just hours after the latest tariff increase went into effect early on Wednesday. Speaking to reporters on Wednesday, Canadian Prime Minister Mark Carney said the tariff increases were 'unjustified'. 'They're illegal. They're bad for American workers, bad for American industry and, of course, for Canadian industry,' he said. Mexican President Claudia Sheinbaum, meanwhile, pledged to pursue countermeasures if the Trump administration refuses to grant tariff relief. She warned that the tariffs would have a 'huge impact' on Mexico's steel and aluminium industries. 'This isn't about an eye for an eye, but rather about protecting our industry and our jobs,' she added, without specifying what steps her government might tariff hike had been unveiled last Friday, when Trump held a rally with steelworkers outside Pittsburgh, Pennsylvania. That region of the US is a part of the Rust Belt, an area that has been heavily affected by the decline in US manufacturing. Trump pledged to use tariffs and other measures to bring jobs and investments back to the area. Previously, in March, Trump set tariffs on steel and aluminium at 25 percent. But he threatened to lift that rate to 50 percent specifically for Canadian imports of the metals, a plan he later appeared to walk back. Those threats, however, roiled relations between the US and its northern neighbour in particular. Canada is the top supplier of steel to the US, followed by Brazil and then Mexico. South Korea and China also top the list. Canada is also responsible for about 40 percent of aluminium imports to the US, followed by the UAE, Russia and Mexico. Carney's government has pledged to pursue retaliatory measures so long as Trump's tariffs remain in place. On Wednesday, one of Canada's largest labour unions, Unifor, called on Carney to take immediate action against the latest tariff hike, including by limiting the country's exports of critical metals to the US. 'Unifor is urging the federal government to act without delay to defend Canada's manufacturing sector and counter the escalating trade assault,' the union said in a statement. Premier Doug Ford — who leads the top manufacturing province in Canada, Ontario — also called for Canada to respond in kind and 'slap another 25 percent' on US steel imports. 'It's tariff for tariff, dollar for dollar. We need to tariff the steel coming into Canada an additional 25 percent, totalling 50 percent,' Ford told reporters. 'Everything's on the table right now.' Both Canada and Mexico have been hard hit by Trump's aggressive tariffs, which include a blanket 25-percent tax on all imports not subject to the US-Mexico-Canada free trade agreement (USMCA), as well as a separate 25-percent levy on automobile imports. The three countries have highly integrated economies, with products like automobiles being built using supplies and factories from multiple locations. The USMCA pact was agreed upon during Trump's first term, from 2017 to 2021. But he has since signalled he hopes to renegotiate the free-trade deal to get more favourable terms for the US. But the doubling of the US steel and aluminium tariffs is expected to have a global impact, well beyond North America. The European Union is also bracing for the increase. The bloc's trade commissioner, Maros Sefcovic, met US Trade Representative Jamieson Greer on the sidelines of a meeting for the Organisation for Economic Cooperation and Development (OECD) on Wednesday. 'We're advancing in the right direction at pace – and staying in close contact to maintain the momentum,' Sefcovic wrote on X afterwards. UK Trade Secretary Jonathan Reynolds also met with Greer, and he said steel and aluminium tariffs would remain at 25 percent for his country. The two countries have been in the process of forging a post-Brexit bilateral trade agreement, announcing a 'breakthrough' last month. 'We're pleased that as a result of our agreement with the US, UK steel will not be subject to these additional tariffs,' a British government spokesperson said. Trump's latest tariff hike comes days after a federal court ruled that his so-called reciprocal tariffs — which imposed customised taxes on nearly all US trading partners — were illegal. Trump had imposed those tariffs in April, only to pause them for 90 days. The court's ruling was quickly paused while legal proceedings continued, and Trump's tariffs have been allowed to remain in place for now. One of the hardest hit countries has been China, which saw US tariffs against its exports skyrocket to 145 percent earlier this year. The Trump administration, however, has since sought to reach a deal with China to end the trade war between the world's two largest economies. The White House said on Monday that Trump would speak to Chinese President Xi Jinping this week, raising hopes the duo could soothe tensions and speed up on Wednesday, Trump appeared to dampen hopes for a quick deal. 'I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!' he posted on his Truth Social platform. When asked about the remarks during a regular news briefing, Chinese Foreign Ministry spokesperson Lin Jian said Beijing's 'principles and stance on developing Sino-US relations are consistent'.
