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Tariff Tuesday is the day where we cover how President Trump’s tariffs, if fully enacted, will impact the auto industry, increase costs, and limit consumer choice. We started this series on April 15, Tax Day for those in the United States, because Trump’s tariffs amount to one of the largest single increases in taxes on the American People. The tariffs which, if fully implemented, will raise $1.4 trillion in revenue, and increase costs per household between $1,900 to $7,600 per year. Manufacturers are shuffling their decks Since the Trump tariffs have gone into place, automobile manufacturers have been rushing to shift production to avoid tariffs and reciprocal tariffs imposed by other countries. This has lead to some breathless and inaccurate or incomplete headlines like: Mazda set to stop U.S. production on this popular model. Here’s what that means for you - Daily Dot First major auto manufacturer (Mazda) pulls plug on US production due to tariffs - MSN Massive blow to Trump as Japanese car giant (Subaru) moves manufacturing OUT of US in tariff twist - Daily Mail Trump tariffs cost U.S. millions as Subaru shifts supply to Japan - MSN While some of the above articles explain the truth in the body of the stories, in these days of click-bait headlines, it is important that we don't bury the lead. For both Mazda and Subaru, the production shifts are for vehicles built in the U.S. and bound for Canada. Because of Trump's tariffs on imported vehicles, Canada placed a reciprocal tariff on vehicles imported from the U.S. Going forward, Subarus sold in Canada will have a "Made in Japan" sticker on them. Prior to Trump's election, the popular Forrester model was slated start production in Indiana taking over allocation from the outgoing Subaru Outback. The new Subaru Outback Crossover is slated to be built in Japan, however that may change with the tariffs in place. Unlike the domestic manufacturers, Subaru does not have multiple plants in the U.S. to move overseas production to their Lafayette, IN plant. The Subaru CrossTrek entered into production in the U.S. in 2023, only certain trimlines are made here with the base and premium trims still built in Japan. It is likely that Subaru will shift all US Crosstrek production to Indiana. Subaru's sports car, the Subaru BR-Z, is unlikely to survive the tariff regime as we explained in our Sports Cars are Dead piece. The Mazda CX-50 is the only Mazda model offered for sale in the U.S. that is built in the U.S in Huntsville, Alabama. The Huntsville plant is a joint venture with Toyota who builds the Corolla Cross there as well. Mazda announced a pause in production of the CX-50 after the tariffs went into affect to regroup. The plant had been supplying roughly 11,000 CX-50s to the Canadian market. It is likely that Canadian CX-50s will be imported from China in future, though there has been no official word on that from Mazda yet. In a statement, Mazda says that overall production of the CX-50 at Huntsville should remain the same, meaning that factory's output will be entirely for the U.S. market. It is likely that Mazda expects sales of the CX-5, a roughly similar sized crossover at a lower price and imported from Japan, will fall as the tariffs push the price above the CX-50's price. It's also possible that Mazda sees opportunity for increased sales of the CX-50 being one of the few small crossovers built in the US. Audi, which paused all imports in early April and has no production in the U.S., is looking to move production of certain models to Volkswagen's Chattanooga TN plant. The Audi Q4 eTron is built on the same platform as the Volkswagen ID.4 built in Chattanooga while the next version of the Audi Q8 eTron could join production of the new Scout truck and SUV at that brand's new plant in South Carolina. The larger brands like Toyota, GM, and Ford have more flexibility to move production around. GM in particular is looking to restructure its supply lines on trucks if the tariffs remain permanent, however, that does not necessarily mean a return to US production if they can prove enough of their sourced parts come from the U.S. Playing the cards in their hand Across the board, manufacturers are digging into their supply chains to tag parts made in the U.S., Mexico, and Canada. In the new tariff requirements there is an exemption for raw materials and parts sourced from the U.S. in vehicles that have their final assembly in Mexico or Canada. Even with the supply-chain turmoil of the Covid-19 years, manufacturers do not have their parts content sourcing mapped to the raw material level. However, in order to qualify for that exemption, the vehicle must have 75-percent or more of its content sourced from North America. Calculating those savings correctly could make or break a model. According to The Peterson Institute for International Economics, Mexican built vehicles already have an average of 40-percent to as high as 50-percent U.S. content. (Automotive News - Subscription Required). Previously, an engine assembled in Mexico would be tariff free as long as some of the parts were made in the U.S. Now, manufacturers have to calculate which parts come from where, where were the raw materials sourced, and how much value was added in a particular country in order to calculate the tax. Unfortunately, even those calculations cost time and money manufacturers will pass an increase cost to consumers without an increase in value. Gotta know when to fold'em One of the many reasons cited by Trump for imposing these tariffs is to correct what he sees as an unfair trade imbalance between the U.S., Canada, and Mexico. Setting aside the fact that Canada has the same size population as the State of California and as such there would never be balanced trade between the U.S. and Canada, the unintended consequences are the reactions by auto manufacturers are making the trade imbalance worse with at least roughly 40,000 fewer U.S. built vehicles being exported to Canada and the remainder scrambling to prove their content sources to avoid the Trump tariffs and leave production in Mexico or Canada. Any trade imbalance is not going to be fixed by Audi moving a few low volume products to existing U.S. factories. This works out to a net loss for the American consumer. Read more Tariff Tuesday articles below: Tariff Tuesday - Big Trouble in Little Crossovers Tariff Tuesday - Buick Killing it in China; Killed in the U.S. Tariff Tuesday - Sports Cars are Dead View full article
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Tariff Tuesday is the day where we cover how President Trump’s tariffs, if fully enacted, will impact the auto industry, increase costs, and limit consumer choice. We started this series on April 15, Tax Day for those in the United States, because Trump’s tariffs amount to one of the largest single increases in taxes on the American People. The tariffs which, if fully implemented, will raise $1.4 trillion in revenue, and increase costs per household between $1,900 to $7,600 per year. Manufacturers are shuffling their decks Since the Trump tariffs have gone into place, automobile manufacturers have been rushing to shift production to avoid tariffs and reciprocal tariffs imposed by other countries. This has lead to some breathless and inaccurate or incomplete headlines like: Mazda set to stop U.S. production on this popular model. Here’s what that means for you - Daily Dot First major auto manufacturer (Mazda) pulls plug on US production due to tariffs - MSN Massive blow to Trump as Japanese car giant (Subaru) moves manufacturing OUT of US in tariff twist - Daily Mail Trump tariffs cost U.S. millions as Subaru shifts supply to Japan - MSN While some of the above articles explain the truth in the body of the stories, in these days of click-bait headlines, it is important that we don't bury the lead. For both Mazda and Subaru, the production shifts are for vehicles built in the U.S. and bound for Canada. Because of Trump's tariffs on imported vehicles, Canada placed a reciprocal tariff on vehicles imported from the U.S. Going forward, Subarus sold in Canada will have a "Made in Japan" sticker on them. Prior to Trump's election, the popular Forrester model was slated start production in Indiana taking over allocation from the outgoing Subaru Outback. The new Subaru Outback Crossover is slated to be built in Japan, however that may change with the tariffs in place. Unlike the domestic manufacturers, Subaru does not have multiple plants in the U.S. to move overseas production to their Lafayette, IN plant. The Subaru CrossTrek entered into production in the U.S. in 2023, only certain trimlines are made here with the base and premium trims still built in Japan. It is likely that Subaru will shift all US Crosstrek production to Indiana. Subaru's sports car, the Subaru BR-Z, is unlikely to survive the tariff regime as we explained in our Sports Cars are Dead piece. The Mazda CX-50 is the only Mazda model offered for sale in the U.S. that is built in the U.S in Huntsville, Alabama. The Huntsville plant is a joint venture with Toyota who builds the Corolla Cross there as well. Mazda announced a pause in production of the CX-50 after the tariffs went into affect to regroup. The plant had been supplying roughly 11,000 CX-50s to the Canadian market. It is likely that Canadian CX-50s will be imported from China in future, though there has been no official word on that from Mazda yet. In a statement, Mazda says that overall production of the CX-50 at Huntsville should remain the same, meaning that factory's output will be entirely for the U.S. market. It is likely that Mazda expects sales of the CX-5, a roughly similar sized crossover at a lower price and imported from Japan, will fall as the tariffs push the price above the CX-50's price. It's also possible that Mazda sees opportunity for increased sales of the CX-50 being one of the few small crossovers built in the US. Audi, which paused all imports in early April and has no production in the U.S., is looking to move production of certain models to Volkswagen's Chattanooga TN plant. The Audi Q4 eTron is built on the same platform as the Volkswagen ID.4 built in Chattanooga while the next version of the Audi Q8 eTron could join production of the new Scout truck and SUV at that brand's new plant in South Carolina. The larger brands like Toyota, GM, and Ford have more flexibility to move production around. GM in particular is looking to restructure its supply lines on trucks if the tariffs remain permanent, however, that does not necessarily mean a return to US production if they can prove enough of their sourced parts come from the U.S. Playing the cards in their hand Across the board, manufacturers are digging into their supply chains to tag parts made in the U.S., Mexico, and Canada. In the new tariff requirements there is an exemption for raw materials and parts sourced from the U.S. in vehicles that have their final assembly in Mexico or Canada. Even with the supply-chain turmoil of the Covid-19 years, manufacturers do not have their parts content sourcing mapped to the raw material level. However, in order to qualify for that exemption, the vehicle must have 75-percent or more of its content sourced from North America. Calculating those savings correctly could make or break a model. According to The Peterson Institute for International Economics, Mexican built vehicles already have an average of 40-percent to as high as 50-percent U.S. content. (Automotive News - Subscription Required). Previously, an engine assembled in Mexico would be tariff free as long as some of the parts were made in the U.S. Now, manufacturers have to calculate which parts come from where, where were the raw materials sourced, and how much value was added in a particular country in order to calculate the tax. Unfortunately, even those calculations cost time and money manufacturers will pass an increase cost to consumers without an increase in value. Gotta know when to fold'em One of the many reasons cited by Trump for imposing these tariffs is to correct what he sees as an unfair trade imbalance between the U.S., Canada, and Mexico. Setting aside the fact that Canada has the same size population as the State of California and as such there would never be balanced trade between the U.S. and Canada, the unintended consequences are the reactions by auto manufacturers are making the trade imbalance worse with at least roughly 40,000 fewer U.S. built vehicles being exported to Canada and the remainder scrambling to prove their content sources to avoid the Trump tariffs and leave production in Mexico or Canada. Any trade imbalance is not going to be fixed by Audi moving a few low volume products to existing U.S. factories. This works out to a net loss for the American consumer. Read more Tariff Tuesday articles below: Tariff Tuesday - Big Trouble in Little Crossovers Tariff Tuesday - Buick Killing it in China; Killed in the U.S. Tariff Tuesday - Sports Cars are Dead -
New York - Subaru unveiled the 2026 Subaru Trailseeker to a packed crowd as the New York International Auto Show this morning. The Trailseeker is Subaru's first fully in-house electric vehicle and Subaru promises another electric SUV, likely based on this same platform, later this year. The Trailseeker come standard with Subaru's legendary Symetrical All-Wheel Drive system with dual motors placed at the front and rear of axles. With around 375 horsepower available, the Trailseeker is rated to tow 3,500 lbs. An X-Mode system allows for further off-road chops offering Snow/Dirt and Deep Snow/Mud modes, Grip control, and downhill assist. Power comes from a 74.7 kWh lithium ion pack capable of delivering at least 260 miles to a charge in optimum conditions. Subaru is moving to the NACS charge port standard, enabling a wide range of charging options, including up to 15,000 additional Tesla charging stations. The Trailseeker accepts up to 150kw charging and can charge from 10-percent to 80-percent in as little as 35 minutes when using the battery preconditioning system. Compared to Subaru's other offering, the Solterra, the Trailseeker is 6-inches longer and an inch taller than the Solterra. Inside, the open cabin is punctuated by a 14-inch touchscreen, the largest ever in a Subaru. Metallic finishes along the dash emphasize the horizontal theme, and a wide center console provides a centralized hub for devices and personal items for easy storage. The standard 14-inch Subaru Multimedia touchscreen offers wireless Apple CarPlay and Android Auto compatibility for entertainment on the go. Two wireless, 15W smartphone chargers keep devices charged, while two fast USB-C chargers keep rear-seat passengers connected. All models are equipped with a suite of EyeSight driver-assistance technologies, including Pre-Collision Braking, Front Cross Traffic Alert, Blind Spot Monitors, Lane Departure Alert, a panoramic view monitor, Emergency Stop Assist, Traffic Jam Assist, Lane Change Assist, Advanced Adaptive Cruise Control, and more. Pricing and detailed specifications of the 2026 Trailseeker will be available closer to launch in early 2026 View full article
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Subaru News: 2026 Subaru Outback Transitions from Wagon to SUV
Drew Dowdell posted a topic in Subaru
For the first time since... forever, Subaru is now without a wagon. The Outback has been one of Subaru's legendary vehicles since it became a trim line on the Subaru Legacy Wagon in 1994 and a model in its own right in 1999. Sales of wagons have dwindled in recent years, and with the demise of the Subaru Legacy sedan last year, there was no longer a platform for Subaru to base a wagon on. However, the Outback name has tremendous brand cache, and Subaru is looking to build on that with a new Subaru Outback SUV. Wagon lovers, all three of them, will lament, but the march of progress never stops. For 2026, the Outback Wilderness trim focuses on performance both on and off road. Powered by a 2.4-liter turbocharged boxer producing 260 horsepower and a stout 277 lb-ft of torque, the Outback Wilderness promises to maintain that boxer grunt that Subaru enthusiasts crave. Power is routed through a CVT with 8-speed manual mode to Subaru's Symmetrical All-Wheel drive system with X-Mode. The X-MODE Dual Mode System with Snow/Dirt and Deep Snow/Mud modes adds confidence for Outback Wilderness drivers. Compared with the standard Outback, the all-wheel drive system is revised to allow the center differential to lock faster, thereby reducing wheelspin in low-traction situations. The 2026 Subaru Outback Wilderness also offers enhanced approach, departure, and breakover angles, compared to the rest of the 2026 Outback lineup. The approach angle has been extended to 20 degrees compared to 18 degrees; ramp breakover moves up to 21.2 degrees compared to 19.4 degrees; and the departure angle increases to 22.5 degrees compared to 21.4 degrees. Out of the Wilderness Those opting for a more city-appropriate Outback will find a welcome home in the non-Wilderness model. Available in Premium, Limited, Touring, Limited XT, Touring XT, and Wilderness trim levels when it goes on sale in late 2025, non-Wilderness trims come standard with a naturally aspirated 2.5-liter 4-cylinder boxer engine producing 180 horsepower and 178 lb-ft of torque and feeding the standard Symmetrical All-Wheel drive through Subaru's standard CVT. Steering on all Outback models uses components from Subaru's WRX, providing a more direct feel and feedback. The 2026 Subaru Outback also comes standard with a 12.3-inch full digital instrument cluster with selectable views, including a new Calm Mode to minimize driver distraction for a more relaxing journey. A traditional, Normal Mode view displays gauges and information, while a map-focused mode offers destination assistance via the available onboard, cloud-based navigation system. When paired with a smartphone, a separate view projects turn-by-turn navigation from apps such as Apple Maps, and an EyeSight-focused Mode displays a large, easy-to-read view of the road ahead, including surrounding vehicles. The all-new 2026 Subaru Outback brings along more space for passengers and cargo than any previous Outback, ensuring driver and passengers arrive prepared for their next adventure. In addition to innovative cargo solutions, the new Outback offers more space, more comfort, and smarter designs for its passengers. Thanks to a 2-inch taller roofline and an all-new design, the Outback offers 34.6 cubic feet of cargo capacity, larger by 2 cubic feet than its predecessor. The cargo area is also 2 inches taller, while the load floor width spans 43.3 inches, wider than its competitors. Flexible and durable interior utility hooks offer tie down points for gear and can be used in the liftgate to hold items such as lanterns or wet gear, up to 6 pounds. Front and rear passengers get more headroom in the new Outback, and new low-fatigue seats mounted directly onto the chassis improve long-distance comfort and reduce head movement on longer drives. Lateral sway in the new Outback has been reduced by 42% compared to its predecessor, and an adjustable driver’s seat cushion helps to support legs for longer journeys. Inside the cabin, the new Subaru Outback is quieter and more refined thanks to sound-absorbing materials used in the roof and headliner. Wind noise has been reduced by 10% thanks to aerodynamic elements in the body sides and roof rails. More information, detailed specifications, and pricing information will be available closer to launch in late 2025. View full article -
New York - Subaru released the updated 2026 Subaru Solterra this morning with significant upgrades to better serve EV buyers. The 2026 Solterra brings Subaru's first pure EV model up to popular specs. A 25-percent increase in range bring the expected range up to 285 miles in optimal conditions. Starting with this model year, the Solterra will adopt the NACS port, enabling charging at an additional 15,000 locations, including select Tesla Superchargers across North America. Charge speed has also increased, and when using pre-conditioning, the 2026 Solterra can accept power at a rate of up to 150kw, allowing for charging from 10-percent to 80-percent in roughly 35 minutes. The front and rear motors are managed with a new controller, enabling more flexible power power transfer. In base form, the front and rear motors combine to make 233 horsepower. For the first time, the Solterra will be offered in a higher-performance XT version with 338 horsepower, enough to propel the Solterra XT form 0-60 in less than 5 seconds. All Solterras are equipped with Subaru's Symmetrical All-Wheel Drive system with X-Mode for more off-road situations. Subaru made refinements to the suspension and drive system to predict movement and adjust power accordingly for a smoother and more predicable ride. Inside, an all-new infotainment system features a 14-inch screen with Android Auto and Apple Carplay. Dual wirelss phone chargers are standard up front with high-powered USB-C chargers for rear passengers. The front of the new 2026 Solterra debuts an all-new Subaru EV lighting signature with a six-star illuminated logo, redesigned headlamps, a new front bumper design, and newly designed 20- and 18-inch wheels. Around the back, a new rear badge, rear gate garnish, and spoiler bring a distinctive nighttime lighting presence and improve aerodynamic performance. Pricing and detailed specifications for the 2026 Subaru Solterra will be available when it goes on sale later this year. View full article
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For the first time since... forever, Subaru is now without a wagon. The Outback has been one of Subaru's legendary vehicles since it became a trim line on the Subaru Legacy Wagon in 1994 and a model in its own right in 1999. Sales of wagons have dwindled in recent years, and with the demise of the Subaru Legacy sedan last year, there was no longer a platform for Subaru to base a wagon on. However, the Outback name has tremendous brand cache, and Subaru is looking to build on that with a new Subaru Outback SUV. Wagon lovers, all three of them, will lament, but the march of progress never stops. For 2026, the Outback Wilderness trim focuses on performance both on and off road. Powered by a 2.4-liter turbocharged boxer producing 260 horsepower and a stout 277 lb-ft of torque, the Outback Wilderness promises to maintain that boxer grunt that Subaru enthusiasts crave. Power is routed through a CVT with 8-speed manual mode to Subaru's Symmetrical All-Wheel drive system with X-Mode. The X-MODE Dual Mode System with Snow/Dirt and Deep Snow/Mud modes adds confidence for Outback Wilderness drivers. Compared with the standard Outback, the all-wheel drive system is revised to allow the center differential to lock faster, thereby reducing wheelspin in low-traction situations. The 2026 Subaru Outback Wilderness also offers enhanced approach, departure, and breakover angles, compared to the rest of the 2026 Outback lineup. The approach angle has been extended to 20 degrees compared to 18 degrees; ramp breakover moves up to 21.2 degrees compared to 19.4 degrees; and the departure angle increases to 22.5 degrees compared to 21.4 degrees. Out of the Wilderness Those opting for a more city-appropriate Outback will find a welcome home in the non-Wilderness model. Available in Premium, Limited, Touring, Limited XT, Touring XT, and Wilderness trim levels when it goes on sale in late 2025, non-Wilderness trims come standard with a naturally aspirated 2.5-liter 4-cylinder boxer engine producing 180 horsepower and 178 lb-ft of torque and feeding the standard Symmetrical All-Wheel drive through Subaru's standard CVT. Steering on all Outback models uses components from Subaru's WRX, providing a more direct feel and feedback. The 2026 Subaru Outback also comes standard with a 12.3-inch full digital instrument cluster with selectable views, including a new Calm Mode to minimize driver distraction for a more relaxing journey. A traditional, Normal Mode view displays gauges and information, while a map-focused mode offers destination assistance via the available onboard, cloud-based navigation system. When paired with a smartphone, a separate view projects turn-by-turn navigation from apps such as Apple Maps, and an EyeSight-focused Mode displays a large, easy-to-read view of the road ahead, including surrounding vehicles. The all-new 2026 Subaru Outback brings along more space for passengers and cargo than any previous Outback, ensuring driver and passengers arrive prepared for their next adventure. In addition to innovative cargo solutions, the new Outback offers more space, more comfort, and smarter designs for its passengers. Thanks to a 2-inch taller roofline and an all-new design, the Outback offers 34.6 cubic feet of cargo capacity, larger by 2 cubic feet than its predecessor. The cargo area is also 2 inches taller, while the load floor width spans 43.3 inches, wider than its competitors. Flexible and durable interior utility hooks offer tie down points for gear and can be used in the liftgate to hold items such as lanterns or wet gear, up to 6 pounds. Front and rear passengers get more headroom in the new Outback, and new low-fatigue seats mounted directly onto the chassis improve long-distance comfort and reduce head movement on longer drives. Lateral sway in the new Outback has been reduced by 42% compared to its predecessor, and an adjustable driver’s seat cushion helps to support legs for longer journeys. Inside the cabin, the new Subaru Outback is quieter and more refined thanks to sound-absorbing materials used in the roof and headliner. Wind noise has been reduced by 10% thanks to aerodynamic elements in the body sides and roof rails. More information, detailed specifications, and pricing information will be available closer to launch in late 2025. -
From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
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From the album: 2026 Subaru Outback
