Mitsubishi Motors announced on Tuesday that it will increase the prices of its U.S. vehicles by an average of 2.1%. The price hike is expected to go into effect on Wednesday. The Japanese automaker joins the rapidly growing list of automakers who are passing the increased costs along to consumers due to the Trump administration’s 25% tariffs on vehicle imports.
In April, in the wake of the tariff enforcement, Mitsubishi suspended shipments from ports to U.S. dealers. The company likely adopted a wait-and-see approach by withholding inventory, hoping for additional clarity or a resolution to the issue. However, Mitsubishi resumed deliveries last week, suggesting that the automaker may have given up hope that the situation would be resolved swiftly.
The price hike, which will go into effect on Wednesday, is “a direct result of our regular and ongoing review of pricing to ensure we are in line with segment expectations,” the automaker said. However, the price increases will apply solely to new shipments, and current dealer inventory will not be impacted.
In May, the automaker is also weighing a return to U.S. manufacturing through a partnership with Nissan. Nissan currently has several factories operating well below capacity. If the partnership moves forward, it would allow the Japanese automaker to establish a manufacturing footprint on American soil. The collaboration would mark Mitsubishi’s return to American manufacturing since shuttering its sole Illinois-based plant in 2015.
