Trump's Tariffs Won't Deter Production Plans at Lafayette SIA Plant

LAFAYETTE, Ind. — Despite the fact that Subaru plans to cease U.S. manufacturing of the Outback line by late 2025, the firm stated this choice wasn’t influenced by the recent tariffs introduced under the Trump administration.

Craig Koven, who manages communications and external relations at Subaru of Indiana Automotive, stated that the choice to discontinue American manufacturing of the Outback was planned since 2024.

"The production modifications for the new model have been under consideration for quite some time — these changes are not connected to recent occurrences," Koven stated.

During the April 24 episode of Automotive News Canada’s podcast, Subaru Canada CEO Tomohiro Kubota mentioned that the previously planned relocation of Outback model production from their facility in Lafayette to manufacturing sites in Japan has led the company to conduct further analysis on how tariffs might impact revenues.

Kubota mentioned during the podcast that they are engaging with both national and regional dealer advisory councils about potential countermeasures. However, the overall effect remains under investigation regarding the associated costs. They aim to keep any price increases as small as feasible.

Koven mentioned that moving away from the Outback will make room for producing the Forester model. He added that by early 2026, SIA plans to start manufacturing the Forester Hybrid, which will be their initial hybrid vehicle.

Jillian Ellison works as a journalist for the Journal & Courier. You can contact her through email at jellison@gannett.com.

The article initially appeared in the Lafayette Journal & Courier. The tariffs imposed during the Trump administration will not affect the production schedules at the Lafayette SIA facility.