Subaru’s American Dream Ends in a Tariff-Flavoured Cold Shower

Born in the mountains and forged on winding roads, Subaru has taken a step back — not because its legendary all-wheel-drive stumbled, but because politics yanked the ground out from beneath its tyres. Subaru is slashing production in the United States. The culprit? Donald Trump and his infamous “America First” tariff escapades, which — in hindsight — now taste a bit like soggy French fries after an hour-long wait in a McDrive queue.

Back when things seemed smooth, Subaru had a firm grip on the Canadian market — 26% of the Subarus sold there were proudly built in the U.S. But then Canada clapped back with retaliatory tariffs, essentially saying, “Oh, that’s how you want to play? Fine.” Suddenly, it became cheaper to ship cars not from the warehouses of Indiana, but straight from Japan — across the entire Pacific Ocean.

Subaru’s top brass didn’t mince words: the whole cross-border export-import circus needs a full rewrite. Otherwise, the tariffs will chew through the profits like a woodpecker on a pine trunk. The fallout? Fewer cars rolling out of American plants. Fewer jobs. More unhappy factory workers being told, “Sorry, but your car’s back on a boat.”

The biggest casualty? Subaru Outback. The dependable adventure wagon, cherished in America like grilled bacon and summer camping. Currently assembled in Indiana, it’s now too pricey to ship to Canada. Production will drop. And probably morale with it.

Subaru’s plan is painfully clear: by 2026, the share of U.S.-built Subarus in the Canadian market will shrink from 26% to just 10%. That’s not just a tactical shift. It’s a complete reassessment of the business model — driven not by engineering, but by economics in a stars-and-stripes disguise.