Nissan Halts Canada-Bound Vehicle Production Amid U.S.-Canada Tariff Uncertainty

Nissan Motor Co. (OTC:NSANY, TYO:7201) has suspended production of three vehicle models bound for Canada at its U.S. plants in Tennessee and Mississippi, according to a Nikkei report on Wednesday. The move comes amid ongoing uncertainty surrounding auto tariffs between the U.S. and Canada.

Production of the Pathfinder and Murano SUVs at Nissan’s Tennessee facility and the Frontier pickup truck in Mississippi has reportedly been paused since May. The Japanese automaker has not disclosed how many units have been impacted by the halt.

The suspension follows escalating trade tensions triggered by a 25% tariff imposed by the Biden administration on imported automobiles in April. In response, Canada implemented retaliatory trade measures, increasing uncertainty for automakers relying on cross-border supply chains and exports.

Just a day earlier, Kyodo News reported that Nissan is also scaling back production plans for its Leaf electric vehicle due to a parts shortage tied to China’s export restrictions on rare earth materials, which are essential for EV manufacturing. The twin challenges of trade policy and supply chain disruptions are putting pressure on Nissan's North American operations.

Nissan's decision to pause production highlights the growing ripple effects of geopolitical and trade policy shifts on global automakers. As tariff negotiations continue, automakers like Nissan face mounting difficulties in planning and maintaining cross-border production strategies.

This latest development underscores the broader impact of U.S. trade policy and supply chain vulnerabilities on the automotive industry. Industry observers warn that prolonged uncertainty could lead to longer-term production adjustments or shifts in supply chain strategies for vehicles headed to North American markets.

For Nissan and other global carmakers, staying agile amid rising trade tensions and supply shortages remains crucial to navigating the evolving automotive landscape.