Mitsubishi Motors announced Tuesday it will raise U.S. vehicle prices by an average of 2.1%, making it the first Japanese automaker to pass tariff costs directly to consumers following President Donald Trump’s 25% levy on auto imports.
The price increase takes effect Wednesday and stems from the automaker’s “regular and ongoing review of pricing” to align with market expectations, according to company statements. The move comes after Mitsubishi suspended deliveries from ports to dealers in April and only resumed shipments last week.
Unlike rivals with U.S. manufacturing, Mitsubishi imports all its American-sold vehicles from Japan, leaving it particularly vulnerable to the tariffs imposed in April. The company initially held vehicles at ports while evaluating the policy impact, but appears to have concluded that price increases are inevitable.
The adjustment follows similar moves by Ford and Subaru, though other Japanese manufacturers including Toyota and Honda have yet to announce price hikes. Industry analysts predict automakers may initially absorb tariff costs before eventually passing them to consumers, as the Alliance for Automotive Innovation warns tariffs could add thousands of dollars to vehicle prices.
Mitsubishi’s U.S. sales rose 11% in the first quarter after climbing 26% last year to 110,000 vehicles, but the price increases may test consumer demand as the broader industry grapples with tariff-induced cost pressures.
