Automakers all over the world are feeling the effects of ongoing tariffs with Japanese automakers being far from immune when it comes to dealing with some of the fallout. Subaru is the company that has the most to lose as a result of these tariffs due to the bulk of its models being imported into the U.S. The company is now placing its hopes on the Forester SUV, with the iconic nameplate expected to carry the weight of the company on its iconic shoulders.

Subaru putting all of its chips on the Forester

Unlike other Japanese automakers, Subaru does not have a strong production presence in the U.S. with the firm importing over 50% of its vehicles into the U.S. from Japan. This strong dependence on imports has created a sizable problem since the company is paying 25% tariff fees on every vehicle that is imported from Japan.

As a result, Subaru’s operating profit is expected to be slashed by $2.5 billion which would wipe out nearly all of the $2.79 billion it managed to make last year. Subaru recently announced it was going to be raising prices for its models, but the Forester is a make it or break it offering for the company since it will be built at its manufacturing facility in Indiana in a bid to avoid tariffs acoording to a report from Nikkei Asia.

This move is best understood when you look at past precedent with Subaru managing to move 84,629 Foresters in America, showing a modest 3.9% increase over the same period in 2024. These numbers also make the Forester the best-selling SUV it has in the U.S. The company is adding a hybrid version to the lineup and it’s hoping that variant of the Forester will bring even more sales to the company.

Broader U.S. production increases hampered by suppliers

While the company is moving Forester production into the U.S. the firm says its not ready to increase U.S. production as a whole. The key issue is its suppliers in Japan and getting them all to cooperate and be onboard with greater production numbers in the U.S.

“It’s true that it would improve our ability to deal with the tariffs [to build more cars in the US], but it would be difficult without cooperation from all of our suppliers,” he said. “We need to think about this comprehensively” stated company president Atsushi Otsaki.

Osaki also mentioned that the company could increase the Indiana plant’s capacity to over 400,000 vehicles. He also shared that the company received nearly 12,000 orders for the new Forester in Japan alone during April which is double the last monthly record for the model. As such, the company could be on to something, but only if all the right pieces fall into place.