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"If you plan on buying a new US-built 2019 Subaru Outback, Ascent, Impreza, or Legacy, the cost will likely go up as Subaru Corp will be forced to spread the added tariff cost across their US-built lineup."

Not sure when this would go into effect, but I'm trying to use it to convince DH that we should order my Ascent sooner rather than later instead of waiting until someone in TX offers VIP pricing. :devil: This will be my third Subaru, and I'm busting out of my Forester. I have way too many Cub Scouts to haul around come fall.
 

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China is not Japan. But I like your enthusiasm for reasons to buy now. Im sure sales staff are already using that tactic
It mentions this directly in the article.

Article said:
Last week, we published a story reporting the 25 percent tariff on auto imports by the Trump administration would increase the cost of every vehicle sold in the U.S. That means a Subaru Forester, Crosstrek and WRX/STI could cost $5,800 more than it costs now. But a recent report by Automotive News says it's important to know where the car is manufactured.

Just because a car is built in the U.S., doesn't make it safe from tariffs. Automotive News reports, automakers like Subaru Corporation may be forced to spread price increases from tariffs across their entire model lineup.

In Subaru’s case, the Japan-built Forester’s price increase will likely be broken up and added to other models. Although the new 2019 Ascent 3-Row family hauler is built in the U.S., it may suffer from a price increase to make up for foreign-built models, Forester, Crosstrek, WRX, WRX STI and BRZ made in Japan. The Outback Impreza and Legacy are also built at the plant in Lafayette, Indiana and will also likely get a price increase.

The Alliance of Automobile Manufacturers says a 25 percent U.S. tariff on imported passenger vehicles if imposed on national security grounds, would cost American consumers $45 Billion annually (based on 2017 auto sales), or $5,800 per vehicle.
 

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Discussion Starter · #5 ·
China is not Japan. But I like your enthusiasm for reasons to buy now. Im sure sales staff are already using that tactic
But, but, but, the tariffs would be on auto imports. According to the article, Subaru might for forced to spread out the costs over the entire model lineup.

Don't undermine my attempts to get my butt into an Ascent as soon as possible. :grin: It's supposed to be 105* here next week, and 103* the day before that. My 8 year old needs a A/C vent in the back in this climate. We're getting increasingly desperate.
 

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Things like this are a pet peeve of mine. I have never been a proponent of across the board price increases. I do purchasing for a manufacturing business and when petroleum goes up we have suppliers that have across the board increases and because of petroleum, not only do they raise the price on plastics, but they raising on stainless steel parts as well. I believe you should have to pay for what you get. If you are purchasing a car that is subject to the tariff than you should pay more. If the car, such as the Ascent, Outback... which are US made are not subject to the tariff than don't charge me more to offset the other buyers. Kind of a steel from Peter to pay Paul situation.

If companies do this where they spread the costs across the line, than the tariffs are not doing what the administration anticipated. It does not truly benefit the US produced products. It will just cost everyone more for everything.
 

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China is not Japan. But I like your enthusiasm for reasons to buy now. Im sure sales staff are already using that tactic

Subaru sent out an internal message encouraging its retailers to speak with their local reps to encourage them to stop the tariffs. Here is a portion of the message...

"Thank you for your support of this very important initiative. A 25% tariff or tax would be
devastating for our business. As the letter indicates, a 25% tariff or tax could increase the cost of a
$30,000 vehicle by $6,400, which would depress demand by pricing many consumers out of the
market."
 

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China is not Japan. But I like your enthusiasm for reasons to buy now. Im sure sales staff are already using that tactic
What does China have to do with this? The car tariffs are on FOREIGN imports, it's not country specific ... and spreading the pain makes total sense because if you don't, you'll just sell the ones that don't have them and won't be able to move the ones that do.

https://www.nytimes.com/2018/07/19/us/politics/trump-car-import-tariffs.html
 

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"If you plan on buying a new US-built 2019 Subaru Outback, Ascent, Impreza, or Legacy, the cost will likely go up as Subaru Corp will be forced to spread the added tariff cost across their US-built lineup."

Not sure when this would go into effect, but I'm trying to use it to convince DH that we should order my Ascent sooner rather than later instead of waiting until someone in TX offers VIP pricing. :devil: This will be my third Subaru, and I'm busting out of my Forester. I have way too many Cub Scouts to haul around come fall.
I feel you for wanting to push it but, at least in my case, the order is not a contracted final price. That doesn't happen until it's delivered and you pay. For example, some of the items you can order may not be available yet or factory installed so the final price may be different. If tariffs kick in between order and delivery, I don't think the order would save you from paying the tariff ... just my 2 cents. You could always find one you like now and just buy it :)
 

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Subaru sent out an internal message encouraging its retailers to speak with their local reps to encourage them to stop the tariffs. Here is a portion of the message...

"Thank you for your support of this very important initiative. A 25% tariff or tax would be
devastating for our business. As the letter indicates, a 25% tariff or tax could increase the cost of a
$30,000 vehicle by $6,400, which would depress demand by pricing many consumers out of the
market."
I think the ASPCA is going to need to negotiate a larger VIP discount :tango_face_wink:
 

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Is it September yet? A 25% increase would increase the cost of my Ascent by $10,000!!! Which means we would not be buying an ascent :(
More like 1,000 dollars. Most parts are made in this country. Subaru could either pay the tariff on imported parts or find an american supply.

The bottom line. Any tariffs against japan is very unlikely. The media is just winding the spring because the name of "Trump". Obama raised tariffs on steel, tires, solar panels, and other goods. Nothing really happened and the media was completely silent.

Chances are Japan will come to an agreement to reduce its tariffs on usa goods and nothing will happen.
 

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I believe the theory is that Subaru will increase prices across their entire line rather than make, for instance, just the price of the Japanese-imported Forester 25% higher. So while the Ascent in this case wouldn’t increase $10,000 more, the price increase would be very noticeable, much more than $1000.

Trump has asked staff to look into the tariffs on imported cars and parts under the guise of national security. It’s similar to what he’s done already. Given that he’s not afraid of long drawn-out trade wars—even when it causes major problems for US workers—it seems entirely possible, if not likely that he’ll put these tariffs in place.
 

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Is it September yet? A 25% increase would increase the cost of my Ascent by $10,000!!! Which means we would not be buying an ascent :(

Not really, as the article posted above says:


Of the roughly 671,000 vehicles Subaru sold in the US in the last year through March, only half were built in the US. Thus, any enacted tariffs would potentially affect half of Subaru's US sales. Both Subaru and Toyota, which is its largest shareholder, have gone on record in recent weeks expressing dismay at any potential auto-import tariffs.
 

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If someone can tell other countries to stop ripping the US of A off.. until then, if you didn't pre-order months ago then you snooze you lose.
 
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