Customs Price Hiking Highway: Subaru says some cars cost more

If you are planning to buy a car or SUV from Subaru, there are some bad news. You may be paying $750 to $2,055 According to one dealer’s website notification, details will be made by next month as part of the response to 25% of Japanese car manufacturers. Customs The US imposed on foreign auto parts.

Subaru cited “market conditions” when taking over price increases to customers. Previously reported by Reuters. “Modifications have been made to offset the increased costs while maintaining a robust value proposition for our customers. Subaru pricing is not based on the country of origin of its products,” the company told Reuters in a statement.

Earlier this month, Ford Also, prices rise due to customs duties. GM I said it at the time The impact of tariffs would cost the company an estimated $5 billion.

What’s next for buying a car?

The move by Subaru is another signal that a tariff-driven price rise is here to stay, and unfortunately they may not fall.

“They expect it to be permanent,” said Patrick Penfield, a professor of supply chain practice at the Martin J. Whitman School of Management at Syracuse University. “When cars prices rise, they rarely fall. We saw this in the community pandemic. Prices rose and didn’t fall when it was over.”

Penfield said the automakers are not raising prices totally by 25% to pass the tariff fees. Instead, he said, “Many people are negotiating with suppliers to split the tariff costs, some are changing materials that are less affected by tariffs, others are importing similar parts from other countries with lower tariff rates, others are supplying resources domestically to avoid tariffs.”

But ultimately, Penfield said, “All car manufacturers will pass a portion of their tariff costs to their customers.”

Regarding the idea that tariffs will bring car manufacturing back to the US, he says it is unlikely in the short term due to many factors, including factories and labor costs.

“Some car manufacturers try as much as they can to source domestically, but it takes years for that to happen.”