Mitsubishi Motors has increased its destination fee to one of the highest among mainstream automakers importing vehicles into the United States, as U.S. tariffs continue to pressure costs and profitability. The fee hike, which adds to the final sticker price of new cars, has sparked concern among dealers struggling to move inventory amid sluggish demand and limited factory support.
According to Automotive News, Mitsubishi’s latest destination fee makes it the most expensive among non-U.S. automakers, underscoring the challenges the Japanese brand faces in absorbing higher import costs. Dealers say that while tariffs have driven up operational expenses, factory incentives have not kept pace — leaving them with thinner margins and slower sales turnover.
Dealers Warn of Sales Impact
Dealers across the country have voiced frustration, arguing that the Mitsubishi destination fee could discourage potential buyers already dealing with inflation and higher borrowing costs. “Rising sticker prices and limited rebates make it hard to move cars off the lot,” one dealer said, noting that competition from other affordable brands like Hyundai and Nissan is intensifying.
Mitsubishi, which imports its models rather than building them in the U.S., remains particularly vulnerable to the latest round of tariff increases. These import duties have raised costs for manufacturers across the board, forcing companies to either absorb losses or pass them on to consumers through higher vehicle prices.
Tariffs and Affordability Pressures
The automaker’s decision reflects the broader strain facing tariff-exposed importers, especially those positioned as value brands. With profit margins tightening, Mitsubishi’s ability to offer competitively priced vehicles has been challenged. Industry analysts warn that the brand’s recent pricing adjustments could hurt its market share in the entry-level SUV and compact car segments — historically Mitsubishi’s strongest categories.
The company has not yet announced additional relief measures for dealerships or customers, but insiders suggest Mitsubishi may review pricing strategies in the coming quarters if sales soften further.
As the U.S. trade environment remains uncertain, the Mitsubishi destination fee controversy highlights the difficult balance automakers face between sustaining profitability and keeping vehicles affordable for American consumers.