Subaru Canada plans to significantly reduce its reliance on U.S.-built vehicles by the 2026 model year, a strategy aimed at minimizing the impact of U.S. auto tariffs and Canadian countertariffs, according to CEO Tomohiro Kubota.

In 2024, 26% of Subaru vehicles sold in Canada were made at the company's Indiana plant, but that share is expected to drop to 10% as production of the Outback shifts to Japan, which benefits from tariff-free imports under Canada's free-trade agreement with Japan.

Meanwhile, the Indiana plant will begin producing the Forester, though it’s unclear whether Canadian models will come from the U.S. or Japan. Although the changes will reduce tariff exposure, Kubota noted that vehicle pricing at Subaru's Canadian dealerships could still be affected as the company assesses the full impact of the tariffs.