Japanese car maker Subaru is jacking up prices on its vehicles aimed at the American market.

The Outback has proven popular in the US.

Subaru has a manufacturing plant in Indiana, but will now focus on making more vehicles in Japan. 

The decision to raise prices on its American vehicles may be due to President Trump’s tariffs in order to get buyers to purchase American-made vehicles and make it difficult for foreign vehicle makers to succeed there.

President Trump has imposed a 5 per cent tariff on imported vehicles and parts.

Subaru explained: “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.

Depending on the model and specifications, the price of a Subaru will increase between US$1,000 and US$3,000.

The company didn’t specifically attribute the price hike to tariffs but diplomatically declared they were, due to “current market conditions”.

Price increases on vehicles are expected across the world.

Since 2024, the price of a new vehicle has risen by more than twenty per cent in the US. Upheavals in the car market are expected this year as automakers come to grips with the new tariff regime.

Subaru’s CEO Atsushi Osaki said earlier this year in New York, “We are dedicated to offering our American customers a wide range of options to meet their evolving needs.“

People are rushing to buy new vehicles now in order to beat price hikes later. Two weeks ago, the US placed an import tax on new cars and vital parts of 25 per cent. Almost half of cars sold in the US last year were imports.

In 2024, Subaru sold 667,725 vehicles in the US, a 5.6 per cent increase compared to its sales for 2023.