Subaru Slashes 2027 Outback Prices, Revives $32,995 Entry Model

Subaru is rolling back the sticker on the 2027 Outback, and the headline number is a familiar one: the brand is reinstating an entry-level version at **$32,995**, a full $2,000 under where the outgoing model started.

That’s not the only cut. Nearly every other trim steps down by roughly $1,000 on average — even though the Outback is assembled in Japan and shipped to American dealers with import duties still in force.

What the base car actually gets you

The new gateway trim isn’t a stripped rental-spec special. Under the hood sits Subaru’s 2.5-litre boxer four, good for 180 hp, paired with a CVT and the company’s trademark all-wheel drive.

Standard kit includes a 12.1-inch touchscreen, a 12.3-inch digital gauge cluster, the EyeSight driver-assist suite, heated front seats and a power tailgate. Towing capacity is rated at 2,700 lb (1,225 kg) — enough for a small trailer or a pair of jet skis.

Higher up the ladder, the picture looks like this:

• Limited: $39,995, down $1,720
• Touring: $43,495, down $1,900
• Premium: $34,995, unchanged

Hands-free driving, no subscription attached

One detail worth flagging: Subaru’s Highway Hands-Free Assist now comes as standard equipment on the Limited XT and is offered as an option on the Wilderness off-roader. No recurring fee. That’s a pointed contrast with GM and Ford, both of which charge for their hands-free highway systems.

2027 Outback at a glance: 2.5L 180 hp boxer · CVT · all-wheel drive · 12.1-inch touchscreen · 2,700 lb towing · From $32,995

Jeff Walters, President and COO of Subaru of America, framed the move around buyer budgets: the company is “focused on offering vehicles designed to meet the budget and needs of families and new car buyers looking for value and capability.”

Why Subaru is eating the tariff cost

Here’s the awkward part. The Outback is built in Japan, and Japanese imports currently face a 15% US tariff. Cutting prices anyway means Subaru is swallowing more of that cost itself rather than passing it to shoppers.

The logic is volume. American buyers are squeezed on affordability, average transaction prices sit near record highs, and Subaru would rather protect Outback sales than defend its per-unit margin. Whether that bet pays off depends on how much of the price cut converts into showroom traffic.

Subaru isn’t alone in chasing the sub-$35,000 shopper. Acura has made similar moves, and the pattern suggests OEMs now view entry pricing as a competitive weapon rather than an afterthought.

The 2027 Outback lands at US retailers later this year.