Subaru Canada to cut U.S. vehicle imports from 26% to 10% by 2026 due to tariffs.
Outback production moves to Japan; Indiana plant to begin Forester output.
Pricing changes are possible as Subaru assesses impact across its 96 Canadian dealers.
UPDATE: Subaru Canada has contacted us to specify that reducing U.S. vehicle imports from 26% to 10% is not a “plan” but an expectation.
Subaru Canada will reduce the proportion of vehicles imported from the United States to 10 % by the 2026 model year, down from 26 % in 2024. The change is part of a strategic response to new trade tariffs imposed between Canada and the United States.
The company’s CEO, Tomohiro Kubota, said the revised sourcing strategy will help Subaru Canada limit exposure to the Canadian surtax on U.S.-built vehicles. “With that, we can minimize the impact of the counter surtax,” Kubota said.
The import changes follow the 25% tariff U.S. President Donald Trump introduced in April on global vehicle imports, including those from Canada. Ottawa implemented retaliatory duties days later, applying tariffs of up to 25% on American-made vehicles entering Canada.
Vehicles assembled in Canada are not subject to the U.S. import duty. Meanwhile, Japan-sourced vehicles benefit from Canada’s free-trade agreement with Japan and enter the country tariff-free. Subaru does not operate any vehicle assembly plants in Canada.
In 2024, Subaru Canada sold 68,043 vehicles. Of those, 17,713 units, or 26%, were built at the company’s North American manufacturing plant in Lafayette, Indiana. Of that amount, 2,755 were Ascents, 138 were Legacy sedans (no longer available), and 3,719 were Crosstreks. The remainder of Crosstreks (24,584) and all Foresters (16,376) sold in Canada last year were imported from Japan.
Beginning with the 2026 model year, the Outback’s production for Canadian markets will shift from Indiana to Japan. Last year, 11,101 Outbacks were sourced from Indiana, meaning this number will drop to zero very soon. Subaru says the decision was made prior to the implementation of tariffs but will aid efforts to decrease reliance on U.S.-built models.
In place of the Outback, Subaru’s Lafayette facility will begin assembling the Forester later this year. Until now, all Foresters sold in Canada were sourced exclusively from Subaru’s Gunma plant northwest of Tokyo. The company has not confirmed which factory will supply Canadian-market Foresters after the production shift.
Subaru Canada will likely continue sourcing most of its Forester volume from Japan to reach its 10% U.S. import target. The automaker has not disclosed further changes to its import plans. Despite these moves, according to Kubota, price adjustments remain possible across its 96 dealerships in Canada.
Source: Automotive News
