Nissan plans to partially move production to U.S. amid tariff pressures
Nissan Motor is reportedly planning to shift some of its U.S.-bound vehicle production from Japan to the United States to counteract the effects of President Donald Trump’s escalating trade tariffs.
The move, which could take place as early as this summer, would involve reducing production at its Fukuoka factory in western Japan and increasing manufacturing at its Smyrna, Tennessee, plant, where Nissan already produces the popular Rogue SUV, reports Reuters.
The Japanese automaker aims to produce more of the Rogue SUV domestically in the U.S. to mitigate the financial impact of the higher tariffs on imports from Japan.
Currently, the Rogue SUV is produced in both Japan and the U.S., but the shift would likely see a larger share of production moved to Tennessee. This decision follows President Trump’s aggressive tariff strategy, which has significantly increased the cost of importing vehicles and parts from other countries, including Japan.
Strategic Moves to Offset Tariff Impact
In addition to the potential shift of Rogue production, Nissan has already started scaling back its operations at its joint venture plant in Mexico. In response to Trump’s tariff announcements, Nissan has decided to halt new orders for two models of its Infiniti SUVs, which were built in Mexico.
The decision marks a significant reduction in operations at the Mexican facility and is part of the automaker's broader strategy to manage the challenges posed by the U.S. tariff regime.
Nissan’s U.S. operations remain a key part of its global strategy. In 2023, the company sold around 920,000 vehicles in the U.S., with approximately 16% of these units being imported from Japan. The proposed production shift could have ripple effects on local suppliers in Japan, as the company adjusts its supply chain to meet new tariff realities.
Impact on Local Suppliers and Future Outlook
The move to increase U.S. production may benefit Nissan by avoiding additional tariff costs but could also have significant impacts on Japanese suppliers who provide parts for U.S.-bound vehicles.
As Nissan adapts to the changing trade landscape, it remains to be seen how these shifts will affect its broader production strategy and supplier relationships. The company’s ability to maintain production capacity and meet U.S. market demand will be a key factor in determining the success of this shift.
Additionally, Japanese automaker Nissan Motor Co. is undergoing a major leadership change following disappointing financial results.
Latest Business News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
