Nissan is evaluating the possibility of moving its production out of Mexico if a 25 percent tariff is applied to exports of steel, aluminum, and vehicles manufactured in the country. Annually, the company exports around 320 thousand units to the U.S. market, which represents a significant part of its operation in the region.
Despite a temporary agreement between Claudia Sheinbaum and Donald Trump to pause tariffs on Mexican products, if definitive agreements are not reached in the coming weeks, the tariffs could come into effect and directly affect companies like Nissan, Ford, General Motors, and Stellantis.
Nissan Mexico, for its part, has ensured that it remains committed to growth in the country, having produced more than 16 million vehicles. They acknowledge that there are significant changes in the global environment being analyzed.
Claudia Sheinbaum, president of Mexico, ruled out the possibility of Nissan moving its production out of the country, arguing that they would lose the national market. She emphasized that foreign companies in Mexico primarily produce for the domestic market and not for export.
Nissan's evaluation regarding the relocation of its production is joined by concerns expressed by other automakers such as General Motors, Ford, and Stellantis, which also operate in Mexico. The imposition of high tariffs could lead to considering moving production to other countries, as indicated by Makoto Uchida, president and CEO of Nissan.
In response to Uchida's statements, Sheinbaum expressed her skepticism and mentioned that most of the production from Nissan's plant in Aguascalientes is destined for the domestic market. Additionally, she expressed interest in the company manufacturing a hybrid car in Mexico to reduce pollution, which could influence the decision to relocate production outside the country.
Donald Trump has suggested imposing large tariffs on vehicles manufactured in Mexico, which would significantly affect the Mexican automotive industry, representing almost 4 percent of the national GDP. Nissan is continuing to evaluate its options in case these tariffs are implemented.
