Subaru of America announced significant price increases across nearly all its 2025 model lineup, with hikes ranging from $750 to $2,055 depending on the model and trim level. The increases took effect in May 2025, with the company citing “current market conditions” as the primary driver behind the decision.
The announcement comes as automotive manufacturers face mounting pressure from the Trump administration’s 25% tariffs on imported vehicles and automotive parts, which were implemented under Section 232 of the Trade Expansion Act of 1962 to address what the administration considers threats to national security.
Breaking Down Subaru’s Price Increases
The electric Solterra is the sole Subaru model that avoided price increases in this round of adjustments. Every other vehicle in Subaru’s lineup saw significant price bumps that will directly impact consumers shopping for new vehicles.
Model-Specific Price Changes
| Model | Price Increase Range | Most Affected Trim |
|---|---|---|
| Cross trek | $750 | Base Model |
| Impreza | $750 | All Trims |
| Forester | $1,075 – $1,600 | Higher Trims |
| Outback | $1,715 – $1,820 | Premium Trims |
| Legacy | $1,600 | All Trims |
| Ascent | $1,085 – $2,055 | Limited/Touring |
| WRX | $2,000 | All Trims |
| BRZ | $2,000 | All Trims |
| Solt erra | $0 | No Increase |
Ironically, the highest price increases don’t necessarily affect Japanese-built models, with the made-in-Indiana Ascent receiving the largest price bump. This demonstrates how Subaru’s pricing strategy is not based on country of origin, as the company stated.
Market Pressures Driving the Increases
Tariff Impact on Automotive Industry
Subaru imports 45% of its U.S.-sold vehicles, making it particularly vulnerable to tariff-related cost increases. The 25% tariff on imported passenger vehicles and automotive parts has created substantial cost pressures across the industry.
The automotive industry supports more than 10 million jobs and generates $1.2 trillion in annual business, making tariff impacts far-reaching across the economy.
Supply Chain Challenges
Beyond tariffs, other underlying factors include global inflation affecting raw materials like aluminum, steel, and lithium, ongoing supply chain disruptions affecting chip availability, and rising labor costs in key markets. These compounding factors have forced automakers to pass costs along to consumers.
Consumer Impact and Market Response
Immediate Effects on Buyers
Car shoppers considering a Subaru can expect the price increases to take effect on dealer lots starting in June, leaving buyers only a few weeks to lock in previous pricing. Experts recommend that buyers act quickly if they’re planning a purchase, as dealerships may still have limited inventory with pre-hike pricing.
Financing Considerations
The price increases compound affordability challenges as financing rates remain high, which amplifies the effect of more expensive sticker prices. While Subaru vehicles have long been seen as offering solid value, particularly in the all-wheel-drive segment, this pricing shift may cause some shoppers to look at alternative brands or used models.
Industry-Wide Trend
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. Other automakers that import large portions of their U.S. sales volume, including Volkswagen Group, Mazda, and Honda, are likely to follow suit in the coming months.
The Trump administration has shown some flexibility, signing an executive order in April 2025 to soften some automotive tariffs, but President Trump has also warned he may hike auto tariffs further to encourage more domestic production.
This decision by Subaru reflects broader trends in the automotive industry—rising costs, economic uncertainty, and evolving product strategy reshaping vehicle pricing across the board. As manufacturers continue investing in electrification and advanced technologies while managing supply chain pressures, consumers should expect continued price volatility in the automotive market.
The long-term implications extend beyond immediate price increases, as the automotive industry is being pushed to realign trade practices and supply chain strategies in response to changing trade policies.
Frequently Asked Questions
Q: Will Subaru prices increase again this year?
A: A Massachusetts dealer reported expectations for additional price increases before the end of 2025, though Subaru hasn’t officially announced further hikes.
Q: Which Subaru model has the highest price increase?
A: The Ascent SUV faces the largest increase, up to $2,055 depending on trim level, despite being manufactured in Indiana.
Q: Are there any Subaru models without price increases?
A: The electric Solterra is the only Subaru model that avoided price increases in this round of adjustments.
External Government Sources:
- White House Automotive Tariff Fact Sheet
- NHTSA Automotive Industry Oversight
- Department of Commerce Trade Policy
- U.S. Trade Representative Auto Sector
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