Nissan Car Production Tariff War In The US, Three Popular Models Stop!

Nissan Pathfinder. (Doc. Global Nissan)

JAKARTA The wave of tariff wars between the United States and Canada has now directly hit the heart of the auto industry, with Nissan Motor becoming the latest victim.

The Japanese giant automotive company, as published by Reuters on Wednesday, continued a report from Nikkei, was forced to stop production of three of its vehicle models aimed at Canadian markets in its factories in Tennessee and Mississippi, United States.

The suspension of production, which began in May, affects the popular SUVs Pathfinder and Murano assembled in Tennessee, as well as the Frontier pickup truck produced in Mississippi. This drastic decision was taken following the reciprocity rates imposed by the US and Canada against automotive exports.

It is known that the Trump administration had previously imposed an additional 25 percent tariff for automotive imports in April, which Canada responded to at a similar rate. This protectionist policy creates large uncertainties and disrupts the global supply chain that has been integrated for decades.

Nissan's current spokesman has not been able to comment on this report. However, the impact of this tariff policy has been evident. Previously, Mazda Motor was also reported to have stopped production for the Canadian market at its Alabama plant, although it later increased production for the US market.

Meanwhile, the impact of this news was immediately felt on the Tokyo stock market. Nissan shares fell 3.0 percent in the middle of the morning, showing a poorer performance compared to a 0.14 percent decline in the Nikkei index. This reflects investor concerns about the financial impact this trade tension has on the company's profitability.

The termination of production has increasingly added to the problems faced by Nissan recently, including last June when Nissan Motor's annual General Meeting of Shareholders (GMS) was marked by anger and strong demands from shareholders against the company's declining performance. They voiced frustration over the increasingly deep crisis in Japan's third-largest car company, demanding greater management accountability.