It's been over a month since the Trump administration imposed a 25 percent tariff on all imported automobiles, which extends to many of the parts used on vehicles manufactured in the U.S. International automakers wasted no time forecasting how the tariffs would hurt their business. For example, according to The Washington Post, Japan-based Toyota, "the world’s largest automaker," said it expects a $1.2 billion loss in April and May. And fellow Japanese company Honda predicts a $4.4 billion loss this year, amounting to a 70 percent reduction in profit.
However, it's remained unclear how these steep losses would affect consumers—until now. American automaker Ford and Japanese company Subaru both confirmed that they're raising the prices on some vehicles due to tariffs, and the U.S. buyer is going to feel it in their wallet.
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Subaru price hikes will hit dealerships in June.
3 | Subaru iStock
"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," the company said in a statement about its impending price hikes, as CNBC reported.
Subaru of America imports 45 percent of its U.S.-sold vehicles, according to 2024 data from research firm S&P Global Mobility, shared by CNBC. Though the company didn't specifically mention tariffs, it did cite "current market conditions" as a catalyst for its decision.
According to a notice posted on a Subaru dealer website, the price increases will take effect in June and "will add between $750 and $2,055 to vehicles depending on the model and trim," reports CNBC.
Cox Automotive executive analyst Erin Keating told Reuters that Subaru's affordable Forester model "is one of a handful of lower-cost vehicles set to be most affected by tariffs," with an anticipated price hike of between $1,075 and $1,600.
Best Life has reached out to Subaru of America for more details, and we will update this story with their response.
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Ford is also raising prices on 3 cars in July.
Though Ford is headquartered in Dearborn, Michigan, it does produce some vehicles in tariff-hit Mexico. Therefore, the company sent a memo to dealers in April, preparing them for price increases.
Ford spokesperson Said Deep told CBS MoneyWatch that the price hikes will only affect vehicles produced in May and will hit dealers in late June and July.
"The tariff situation is dynamic and while we continue to evaluate the potential impact of tariff actions, we will not change the price of any vehicle currently in inventory through June 2," he clarified.
However, earlier this month, Ford confirmed that it will raise the prices of the Maverick, Bronco Sport, and Mach-E (all produced in Mexico) by up to $2,000, according to CBS MoneyWatch.
Ford said in a statement that the price increases are a result of "usual mid-year pricing actions combined with tariffs." To that point, Ford shared in a separate statement that it expects tariffs to cost the company $1.5 billion this year.
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But Ford is better positioned than other U.S. automakers.
Despite Ford's impending price increases, analysts point out that the company is better positioned to weather tariffs than other U.S. automakers. Despite outsourcing some manufacturing to Mexico, Ford assembles most of its vehicles in the U.S.
"Automakers with the largest U.S. footprint will have a big advantage, and, boy, that is that true for Ford. It puts us in the pole position," said Ford CEO Jim Farley in an earnings call earlier this month, as CBS MoneyWatch reported.
Detroit-based General Motors, on the other hand, expects tariff-related losses of $4 to $5 billion this year.
"GM imports about 46% of the vehicles it sells in the U.S., according to research firm GlobalData," reported the Detroit Free Press. "Whereas, at Ford, that number is 21%, giving it an advantage in this tariff environment."
