Automakers, suppliers, and dealers are responding to the announcement that the United States will implement a 25% tariff on all imported automobiles on April 2. It is widely anticipated that the White House’s statement on Wednesday will result in an increase in the average price of many new vehicles, despite the fact that some companies believe they will absorb some of the tariffs. Intriguingly, at least one dealer is already providing “pre-tariff” rates to attract consumers to showrooms before the implementation of the taxes. Suburban Subaru, located in Vernon, Connecticut, is currently providing “pre-tariff savings” on all new model inventory. For instance, the 2025 Impreza Sport has an MSRP of $29,385. However, the price is reduced to $28,388 when the consumer claims $997 in “pre-tariff savings.” It is uncertain what that number signifies. The total tariff is not taken into account, as 25% of $29,385 is equivalent to $7,214. Regardless of the price, numerous other new vehicles listed on its website are eligible for $997 in “pre-tariff savings.” However, others are promoted as being eligible for a $1,497 pre-tariff refund, while a small number of them are offering a $3,997 pre-tariff rebate. Consequently, the MSRP does not appear to be the solitary determinant of the quantity. However, the fact that the preponderance of the remaining 2024 vehicles has a four-digit discount may be instructive. The 2024 BRZ Limited is the sole exception. I have a strong suspicion that this is merely a stratagem to boost sales. Ultimately, the objective of a dealer is to facilitate the sale of automobiles. Is Suburban Subaru merely offering a refund to capitalize on clients who wish to purchase a new vehicle before the tariffs’ implementation? To locate rebates on a new Subaru, minimal effort is required, even if no other Subaru dealer is available to provide pre-tariff savings. For instance, Planet Subaru in Boston provides a Planet Discount on numerous models, which enables customers to acquire a new Crosstrek for $2,500 less. What precisely is a Planet Discount? Your prediction and mine are equally precise. The term “pre-tariff savings,” on the other hand, suggests a sense of urgency. It serves as a warning to clients that a significant transformation is imminent. The marketing is exceptional. The tariffs, which the White House emphasizes are “100%” permanent, are expected to have a long-term impact on the industry’s supply chain. I anticipate that additional dealers will advocate for a similar refund in the coming days. Honda and its long-standing competitor Toyota are collaborating to incorporate American-made battery modules into the hybrid vehicles that Honda distributes in the United States, according to reliable sources. The solution of “build local” is frequently promoted; however, it is a complex and expensive transformation that may require years to execute. In the interim, the pre-tariff savings raised a compelling question: who is responsible for the tariffs? The costs must be borne by someone, regardless of whether it is a consumer, dealer, supplier, or car manufacturer.
