Subaru Dealer Is Already Promoting a 'Pre-Tariff' Sale Ahead of Price Increases

      Suburban Subaru

      Automakers, suppliers, and dealerships are responding to the 25% tariff that the United States plans to impose on all imported vehicles starting April 2. It is widely anticipated that the average price of many new vehicles will rise following the White House’s announcement on Wednesday, although some companies claim they will absorb part of the tariffs. Curiously, at least one dealer is already promoting “pre-tariff” pricing to attract customers into their showrooms before the tariffs take effect.

      Suburban Subaru in Vernon, Connecticut, is providing “pre-tariff savings” on its entire range of new models. For instance, there's a 2025 Impreza Sport priced at an MSRP of $29,385; this amount is reduced to $28,388 once the buyer claims $997 in “pre-tariff savings.” The origin of this figure is unclear, as it does not represent the full tariff amount, since 25% of $29,385 equals exactly $7,214. Many of the other new vehicles featured on its website also enjoy $997 in “pre-tariff savings,” regardless of their price, but some are listed with a potential $1,497 pre-tariff rebate, and a few come with a $3,997 pre-tariff rebate. It appears that the amount isn’t strictly tied to the MSRP. Notably, most of the remaining 2024 models feature a four-digit rebate, with the sole exception being a 2024 BRZ Limited.

      Part of me believes this is merely a clever sales tactic. After all, it is a dealer’s role to sell cars. Is Suburban Subaru just issuing a rebate to take advantage of buyers wanting to secure a new car order before the tariffs are enacted? While we don’t see other Subaru dealers advertising pre-tariff savings, it’s easy to find discounts on new Subarus elsewhere. For example, Planet Subaru in Boston is offering a Planet Discount of $2,500 off a new Crosstrek. However, what exactly a Planet Discount is remains uncertain. In comparison, the phrase “pre-tariff savings” conveys a sense of urgency, indicating to buyers that something significant is about to change soon. It’s effective marketing.

      I anticipate that more dealers will promote similar rebates in the upcoming days, and the tariffs (which the White House emphasizes are “100%” permanent) are likely to have a lasting impact on the industry’s supply chain. For example, Honda is reportedly collaborating with longtime rival Toyota to produce American-made battery packs for the hybrid models it sells in the U.S. One often-proposed solution is “build local,” though this is a costly and complex transition that could take years to execute. In the interim, the pre-tariff savings highlight a significant question: Who ultimately bears the cost of the tariffs? The burden must fall somewhere, whether on automakers, suppliers, dealers, or customers.

      April 2 is next Wednesday, so we will soon find out.

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