Nissan Navigates U.S. Tariff Troubles with Production Shift

Nissan Motor plans to shift U.S.-bound vehicle production from Japan to the U.S. to counter increased tariffs imposed by President Trump. This move includes reducing operations in Japan and enhancing production in Tennessee. The shift affects both local suppliers and Nissan's strategic planning in the American market.

Nissan Motor is contemplating moving part of its U.S.-bound vehicle production from Japan to the United States, according to a report by the Nikkei. The potential shift arises from escalating tariffs enforced by President Donald Trump on international trade partners.

Sources suggest that as soon as this summer, Nissan will decrease its manufacturing output at the Fukuoka factory in Japan. The strategic move involves transferring production of its key model, the Rogue SUV, to Tennessee to lessen the effects of these new trade tariffs.

Following announcements of new tariffs, Nissan has also stopped taking new U.S. orders for two Mexican-built Infiniti SUVs and will maintain production shifts for the Rogue at its Smyrna, Tennessee plant. Last year, 16% of the 920,000 vehicles Nissan sold in the U.S. were exported from Japan, highlighting the magnitude of this production adjustment.

(With inputs from agencies.)