Subaru Raises Vehicle Prices Amid Tariff Pressure And Rising Costs
Subaru Raises Vehicle Prices Amid Tariff Pressure And Rising Costs
Subaru has announced a series of price hikes across several of its vehicle models, citing “current market conditions” as the driving force behind the decision.
The move comes as automakers grapple with rising costs, including those related to the U.S. government’s continued tariffs on imported vehicles and auto parts. Although Subaru’s official statement does not directly mention tariffs, the timing aligns with broader industry concerns over cost increases linked to ongoing trade policies — particularly the 25% import tariff on foreign vehicles introduced during the Trump administration.
According to a dealer bulletin, the new prices will apply to vehicles arriving at dealerships starting June 2025. The increases vary by model and trim level, ranging from $750 to $2,055.
Subaru’s popular Forester SUV is expected to be among the most affected, with price hikes between $1,075 and $1,600 depending on the trim. The Forester, known for its affordability and strong safety record, remains one of Subaru’s top-selling models in the U.S.
“These pricing adjustments reflect increased operational and manufacturing costs,” Subaru said in a statement. “We remain committed to offering vehicles that provide solid value propositions for our customers.”
Although Subaru emphasized that its pricing strategy is not tied to the origin of its vehicles, analysts suggest that U.S. tariffs continue to exert pressure on the automotive industry. According to recent data from S&P Global Mobility, Subaru imports approximately 45% of the vehicles it sells in the United States, making it particularly vulnerable to import-related costs.
Erin Keating, executive analyst at Cox Automotive, noted, “The Forester and other budget-conscious models are disproportionately impacted. Tariffs tend to weigh more heavily on affordable vehicles because their pricing is more sensitive to small increases.”
Subaru’s price increase mirrors broader industry trends. Earlier this month, Ford Motor Co. raised prices on three of its Mexico-manufactured models by up to $2,000, citing tariff-related cost pressures.
Executives from several major automakers have warned investors that tariffs are expected to cost the industry billions this year, with estimates reaching $5 billion for Detroit-based firms alone. Despite minor relaxations in duties on specific parts, the 25% tariff on imported vehicles remains in place for the approximately 8 million units brought into the U.S. annually.
These rising prices may challenge consumers already burdened by high interest rates and inflation. With affordability becoming a growing concern — particularly in the compact SUV segment — many buyers may delay purchases or turn to used vehicles as alternatives.
Analysts expect automakers to continue adjusting their pricing structures throughout the year as cost pressures persist. “We’re entering a period where price stability in the auto market will be rare,” Keating said. “The next few months could see more ripple effects across brands.”
For now, Subaru says it remains focused on delivering high-value, quality vehicles. But for American car buyers, one thing is clear: buying a new Subaru is about to get more expensive.
