NEWSLETTER
If you see a commercial on television or on YouTube, you will know that “love makes a sub -au, a sub -river.”
American cars buyers cannot have enough of symmetric total traction vehicles of the Japanese brand.
In fact, Consumer Reports data show that the Constellation brand is first in the annual list of independent products testers of the most reliable car manufacturers of the year, dethroning a reign of Toyota and its luxury arm, Lexus.
However, as much as these vehicles are hot products, Subaru faces new challenges, since it is based on its reputation for quality and total traction performance.
Tariffs, it's what will make Subarus more expensive
According to a new letter, the Vice President of Planning and Logistics of Subaru vehicles of America, Lisa Quan, warned that imminent commercial policy could affect the popular car manufacturer, its distributors and their customers.
In the letter addressed to distributors dated March 20, 2025, the Executive warned that the car manufacturer has been “actively accessing the possible effects of tariffs” in the company, noting that any Trump administration policy would increase the cost of the car manufacturer to do business in the United States.
Explicitly, they mention that due to the “commercial uncertainties related to the tariffs of the automotive industry,” current prices of vehicles “cannot be protected and may be subject to changes” after April 2, 2025.
More automotive:
- The new more reliable hybrids in 2025
- New cars buyers have good news about inflated prices
- The new BMW Mini Cooper is a great car for buyers with a budget
In essence, this means that Subaru cannot guarantee the current price of certain models or that the prices that distributors pay for cars that leave the factory can be adjusted to absorb rates, which would eventually be transmitted to the consumer.
This letter is prior to the latest movements of President Trump regarding automotive imports. However, it shows that Subaru was in tune with the working conditions of the industry.
In the Oval office on the afternoon of March 26, Trump announced a 25% tariff on all imported vehicles and pieces that would begin on April 2. In a recent interview with NBC News, he said that “he could not matter less” if car manufacturers raise their prices, and added that consumers will look for cars made in the United States in response.
“No, I could not matter less, because if the prices of foreign cars go up, (Americans) will buy US cars,” he said.
Related: Subaru's CEO could change the United States strategy after Trump's gain
Subaru is in a precarious place regarding the tariff situation.
According to their own figures, 70% of Global Subaru sales come from the United States. However, half of the cars that send to the states are brought from their factories in Japan. In 2024, he sent more than 328,064 cars.
The Japanese manufacturer has been doing some of his popular models in Indiana since 1987. Today, the ascent, Crosstrek and Outback are made in the United States. However, some vehicles, such as the BRZ sports car and its best -selling forest ticket, are manufactured in Japan.
In a round media table in December 2024, the CEO of Subaru, Atsushi Osaki, hinted that the car manufacturer can be creative if President Trump goes out with his.
“Tariffs in our exports from Japan have a great impact on us,” Osaki said. “We are considering possible measures to respond to the proposed rates. One of the various options we are considering is to increase the production capacity in the Indiana plant in the United States”
RELATED: VETERAN FUND MANAGER ISSUE TOD S&P 500 WARNING FOR 2025
