President Donald Trump's decision to impose 25% tariffs on imported vehicles, including those from Canada, is having a devastating impact on the U.S. auto industry. One of the biggest hits is coming from Subaru, which is reorganizing its supply chain due to the trade conflict between the U.S. and Canada.
In 2024, Subaru sold over 68,000 cars in Canada, of which about 26% were made in the US. But by 2026, that percentage will drop to just 10%. The change will affect thousands of units and millions of dollars in American exports. The Outback model, made in the US and very popular in Canada, will no longer be exported across the border, but will come from Japan, writes A2 CNN.
Subaru Canada CEO Tomohiro Kubota said the move is intended to “minimize the impact of the counter-tariffs” that Canada has imposed on American goods. The reciprocal tariffs have upset the balance of decades-old trade agreements between the two countries.
Subaru currently builds the Crosstrek and Forester in Japan for the Canadian market, and it's unclear whether the new Forester production in Indiana will affect that strategy. The company did not comment on the decision.
Meanwhile, other American manufacturers are facing similar consequences: Stellantis laid off 900 employees, Honda moved production of the Civic Hybrid to the US, and GM is increasing production of "Made in USA" luxury cars. (A2 Televizion)
A2 CNN Livestream
MUND TE LEXONI GJITHASHTU
