Nissan Motor Corporation is making strategic moves in response to the recent introduction of a 25% import tariff on all vehicles imported into the US by the government. According to reports, Nissan is considering transferring some of its Japanese production to the US to mitigate the impact of these tariffs.
In light of the new import tariffs, Nissan has decided to halt exports of two Infiniti SUV models from its Mexico facilities to the US. Additionally, the company has reversed its decision to cut a shift on the Rogue SUV assembly line at its Smyrna plant in Tennessee, which was announced earlier this year.
To increase local production in the US and reduce dependence on imported vehicles, Nissan is planning to decrease production of the Rogue SUV at its Fukuoka plant in Japan. Meanwhile, the company will maintain two shifts at its Smyrna plant to ramp up production in the US. The Rogue SUV is a key model for Nissan in the US, with nearly 246,000 units sold last year.
In 2024, Nissan sold a total of 924,000 vehicles in the US under the Nissan and Infiniti brands, with around 16% of them being imported from Japan. The company’s US sales heavily rely on vehicles imported from Mexico, where production costs are lower. As part of its response to the new import tariffs, Nissan is expected to shift a significant portion of production from Mexico to the US, leveraging its surplus capacity in the country.
These strategic moves by Nissan demonstrate the company’s commitment to adapting to changing market conditions and regulatory environments. By increasing local production in the US and adjusting its manufacturing operations, Nissan aims to navigate the challenges posed by the new import tariffs and maintain its competitiveness in the US market.
