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Subaru Alerts Dealers: Tariffs Could Impact Vehicle Prices

Subaru has issued a warning to its dealers regarding potential price increases due to looming tariffs, drawing attention to the uncertainty that many automobile manufacturers face under current trade policies. This alert arrives at a critical time for potential car buyers, indicating that acting swiftly could save them substantial amounts before tariffs take effect.

The Context of the Tariffs

Recent announcements have outlined the possibility of a 25% tariff on automotive imports as part of ongoing trade policy adjustments. In a communication to dealerships, Lisa Quan, Subaru’s Vice President of Vehicle Planning and Logistics, emphasized the impact these tariffs may have on vehicle pricing. This warning comes amid increased scrutiny of the automotive industry under President Trump’s administration.

• Key Points from Subaru’s Announcement:
  • Current vehicle pricing may not hold steady due to increasing tariffs.
  • The anticipated changes to pricing would likely commence after April 2.
  • The ongoing assessment of tariff implications indicates that any imported Subaru vehicles could see significant increases in cost.

Given that Subaru has a manufacturing facility in Indiana, where it produces several popular models like the Ascent, Crosstrek, and Outback, customers may find some relief. However, a critical portion of Subaru’s lineup is still manufactured overseas, which places those models at risk of price hikes due to tariffs.

Timing is Crucial for Buyers

Potential buyers should weigh the implications of these tariffs carefully. To maximize savings, here are a few considerations:

• Act Quickly: If you’re planning to purchase a new Subaru, doing so before April 2 might secure you a better deal, avoiding the inflations that tariffs might incur.
• Research Model Availability: Some Subaru models are manufactured in the U.S., which may be shielded from the brunt of tariffs. However, models produced abroad may see substantial price increases.
• Understand Pricing Trends: Stay informed about announcements from Subaru and related news on trade policies to make a knowledgeable purchasing decision.

Subaru’s Manufacturing Landscape

Subaru’s production in Indiana provides it with an edge compared to manufacturers reliant solely on imported vehicles. Nevertheless, many models, such as the BRZ and the upcoming electric Solterra SUV, are built outside of the U.S. These imports are vulnerable to the proposed 25% tariffs, potentially tacking on thousands of dollars to their prices.

For example, the Solterra, which starts at approximately $38,495, could see its price rise by almost $10,000 if prices adjust fully in response to tariff implementations.

Wider Industry Impact

Subaru isn’t alone in this predicament. The ramifications of the proposed tariffs threaten to affect many automotive brands:

• BMW has signaled its intent to absorb some initial costs associated with tariffs on its Mexican-built cars. However, following the imposition of tariffs on all imports, the scope of those protections may be limited.
• As industry-wide uncertainty looms, customer confidence and purchasing decisions are likely to be influenced by these developments.

Looking Ahead

As the automotive market evolves with these shifting tariff policies, it’s critical for consumers to stay vigilant. Keep an eye on:

• Manufacturer Announcements: Auto brands will likely continue offering updates about pricing strategies as the April deadline approaches.
• Inventory Levels: Sales and inventory may fluctuate dramatically before and after the tariff implementation, influencing selection and availability.
• New Models: Consider newer models or those produced domestically for a more stable pricing framework.

In summary, the impending tariffs represent a significant development in the auto industry, especially for well-known brands like Subaru. By staying informed and proactive, consumers can navigate these changes wisely, making purchasing choices that best fit their financial situations.