If you’ve ever peeked at the door jamb of a brand-new Outback or Ascent, you probably saw "Made in the USA" stamped right there. For a lot of people, that’s where the thought process ends. But in the world of international trade, especially under the United States-Mexico-Canada Agreement (USMCA), a sticker on the door is just the tip of a very expensive iceberg. People keep asking, does Subaru comply with the USMCA's rules? The short answer is yes, but the "how" is way more complicated than just having a factory in Indiana.
Subaru is in a weird spot. They’re smaller than giants like Toyota or Ford, but they’ve got a cult-like following in North America. To keep those customers from paying a massive "tariff tax," Subaru has to jump through some of the strictest hoops in automotive history.
The 75% Math Problem
Under the old NAFTA rules, you only needed about 62.5% of a car to be "local" to avoid taxes. The USMCA cranked that up to 75%. Honestly, that’s a huge jump. For a company like Subaru, which still builds a massive chunk of its global fleet—like the Forester and the BRZ—back in Japan, this requirement creates a massive split in their lineup.
Take the Subaru of Indiana Automotive (SIA) plant in Lafayette. It’s their only factory outside of Japan. They pump out the Outback, Legacy, Ascent, and most trims of the Crosstrek. To hit that 75% Regional Value Content (RVC), Subaru can’t just bolt the cars together in Indiana using Japanese parts. They’ve had to aggressively source "core parts" like engines, transmissions, and body panels from North American suppliers. If they don't hit 75%, that car basically gets treated like an import from overseas, and the costs go through the roof.
It’s Not Just Parts—It’s the Paycheck
One of the wildest parts of the USMCA that nobody really talked about until recently is the Labor Value Content (LVC). It basically says that 40% to 45% of a vehicle’s value has to come from workers making at least $16 an hour.
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For Subaru’s Indiana plant, this isn't a massive hurdle because U.S. manufacturing wages for skilled auto workers generally sit well above that mark. The real headache is the supply chain. Subaru has to prove that the people making the seats, the wiring harnesses, and the dashboard plastics are also being paid "high-wage" rates. It’s a massive paperwork nightmare. They have to track the payroll standards of companies they don't even own just to stay compliant.
The Steel and Aluminum Headache
Then there’s the metal. To comply with USMCA, 70% of a manufacturer's steel and aluminum purchases must originate in North America. Subaru has traditionally been very loyal to Japanese steel—it’s part of their engineering DNA. But the USMCA doesn't care about "tradition."
Over the last few years, Subaru has had to shift its procurement strategy to buy more from American and Canadian mills. If you’ve noticed Subaru prices creeping up, this is a big reason why. Buying local isn't always the cheapest option; sometimes it’s just the "non-tariffed" option.
The Forester Loophole (Or Lack Thereof)
Here is where people get confused. Does Subaru comply with USMCA rules for the Forester? Well, not really, because the Forester is still built in Japan.
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Because it’s built in Ota, Gunma, it doesn't even try to meet USMCA rules. Instead, it’s subject to different trade agreements and standard import duties. This is why you’ll often see more aggressive pricing or different financing deals on an Outback (made in Indiana, USMCA compliant) compared to a Forester. The Indiana-built cars are the "insiders" of the trade deal, while the Japanese-built ones are the "outsiders."
What Happens if They Slip Up?
CBP—Customs and Border Protection—doesn't take "we tried" as an answer. In 2025 and 2026, the scrutiny has only intensified. If Subaru fails to certify a specific model line, they lose that "preferential tariff treatment."
Basically, the car gets hit with a 2.5% tax immediately. On a $40,000 Ascent, that’s an extra $1,000 pure cost. In a low-margin business like car sales, that’s a death sentence for a model's competitiveness. Subaru stays compliant because they literally can’t afford not to. They’ve even utilized what’s called "Alternative Staging Regimes," which gave them a bit more time to phase in these brutal 75% requirements.
Real-World Impact for You
So, what does this mean when you’re standing on the dealership lot?
- Availability: You’ll notice Subaru pushes the "Made in America" models way harder. That’s because the margins are better when they aren't fighting tariffs.
- Tech Splits: Sometimes, the USMCA-compliant cars (like the Indiana Crosstrek trims) might have slightly different component suppliers than the Japanese ones.
- Price Stability: By complying with USMCA, Subaru protects you from sudden 25% "Section 232" national security tariffs that have been threatened on and off over the last few years.
Subaru is currently one of the brands most integrated into the Midwest manufacturing belt. They’ve invested billions into Indiana specifically to stay on the right side of these trade laws. They aren't just complying; they are doubling down on North American production to survive the shift in global trade.
How to Verify a Specific Subaru’s Compliance
If you really want to know if the specific Subaru you’re looking at is a "USMCA child," check the Monroney sticker (the big window price sheet). Look for the "Parts Content" section. It will list the percentage of U.S./Canadian parts. If that number is high—usually 60% or more—and the final assembly point is Lafayette, Indiana, you’re looking at a vehicle that Subaru has carefully engineered to fit within the USMCA’s tight grip.
Moving forward, keep an eye on the 2026 USMCA "joint review." All three countries—the U.S., Mexico, and Canada—are going to sit down and decide if these rules are working. If they tighten the screws even more, Subaru might have to move even more production, like the Forester, to North American soil just to keep the price tags from exploding.
Next Steps for You:
If you're shopping for a Subaru and want to support North American manufacturing or avoid potential tariff-related price hikes, stick to the Outback, Ascent, or Legacy models. For the Crosstrek, check the VIN—if it starts with a "1", "4", or "5", it's built in Indiana and falls under the USMCA umbrella. If it starts with a "J", it’s a Japanese import.