According to a recent report, major Japanese automotive firm Nissan is contemplating relocating some of its production to the United States. This move could serve as an early sign for President Donald Trump that his extensive tariffs may yield the desired results from the White House.
Significance
The White House implemented a 25-percent tariff on auto imports, effective Thursday, as part of a comprehensive set of policies that have significantly impacted global financial markets.
The Trump administration claims these taxes on imported goods will promote domestic manufacturing, encourage U.S. consumers to purchase American-made products, and stimulate the economy. The White House previously noted that the U.S. automobile industry has been compromised by excessive imports that threaten America’s industrial base and supply chains.
“Stay strong; it won’t be easy, but the final outcome will be historic,” Trump remarked on Saturday, referring to the tariffs as an “economic revolution.” Experts predict that car prices will likely increase for consumers.
KEN SHIMIZU/AFP via Getty Images
Key Information
The Japan-based business publication Nikkei reported on Saturday that Nissan, headquartered in Yokohama, is evaluating the possibility of shifting some of its domestic vehicle production intended for the U.S. market to American soil.
A portion of the production for Nissan’s Rogue SUV from the company’s primary factory in Fukuoka, located in southwestern Japan, would be transferred to the U.S., as per the report.
Newsweek has reached out to Nissan via email for a statement.
Nissan sold approximately 920,000 vehicles in the U.S. during 2024, with about 16 percent exported from Japan, according to Nikkei’s findings.
The White House indicated that U.S. consumers purchased 16 million cars, SUVs, and light trucks in 2024, with half of these being imports. Approximately 1 million American workers are employed in the automobile and parts manufacturing sectors, as stated by the Trump administration. New tariffs on imported vehicle components are expected to be announced early next month.
About 25 percent of the Rogue SUV is manufactured in the U.S., while 40 percent is produced in Japan, based on data from the National Highway Traffic Safety Administration.
Nissan also mentioned on Thursday that it would cease accepting new U.S. orders for two SUV models that are produced in Mexico.
In a related development, British luxury carmaker Jaguar Land Rover announced over the weekend that it is halting shipments to the U.S. to focus on “developing our mid- to long-term strategies.”
Public Reactions
Wesley Hunt, a Republican representative from Texas, stated that the tariffs “will bring automotive manufacturing back to America.”
The White House asserted last month that the U.S. automobile sector has been threatened by excessive imports that undermine the nation’s industrial base and supply chains.
Next Steps
The future impact of the auto tariffs on the global automotive industry and supply chains remains uncertain in the coming months.
