Nissan’s top executive has warned that Donald Trump’s proposed tariffs on Mexican imports could force the Japanese automaker to shift production elsewhere – a move that could deal a severe blow to Mexico’s booming auto industry.
CEO Makoto Uchida revealed that if the president follows through on his threat of 25 per cent tariffs on goods crossing the southern border, the company might have to reconsider its manufacturing operations in Mexico, where it currently produces hundreds of thousands of vehicles each year.
‘From Mexico to the US, we are exporting a significant number of cars this fiscal year – 320,000 units are exported from Mexico to the US,’ Uchida said, according to a Reuters translation.
‘If high tariffs are imposed, we need to be ready for this. We may have to transfer production elsewhere, and if that decision is made, we’ll think about how to make it happen while closely monitoring the situation.’
Nissan is Mexico’s second-largest automaker, trailing only General Motors.
Last year, the company produced nearly 670,000 vehicles in the country, with more than 456,000 of those exported to markets like the United States, according to UnoTV.
A potential production shift could disrupt a critical sector of Mexico’s economy, where automotive manufacturing has thrived under the US-Mexico-Canada Agreement (USMCA) in recent years.
The tariffs, however, could threaten those cross-border supply chains that companies like Nissan have long relied on to keep costs down.
Chief executive Makoto Uchida has warned that Donald Trump ‘s proposed tariffs on Mexican imports could force the Japanese automaker to shift production elsewhere
President Donald Trump holds a signed executive order on tariffs on aluminum imports in the Oval Office of the White House in Washington, February 10, 2025
Nissan is Mexico’s second-largest automaker. Last year, the company produced nearly 670,000 vehicles in the country, with more than 456,000 of those exported to markets like the United States
‘We are exporting a large volume to US, so if there’s a high tariff, this would have huge implications on our business, so we need to monitor this carefully,’ Uchida added.
The warning comes as Trump’s proposed tariffs remain on hold until at least March following a phone call with Mexican President Claudia Sheinbaum.
Trump has argued that the tariffs are necessary to pressure Mexico into bolstering border security, citing concerns over fentanyl trafficking and illegal immigration.
‘It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican soldiers on the border separating Mexico and the United States,’ Trump wrote on Truth Social following the call.
‘These soldiers will be specifically designated to stop the flow of fentanyl and illegal migrants into our country.’
Critics have pointed out that Mexico has previously deployed troops to assist with border enforcement, raising questions about how much of a policy shift Sheinbaum’s move represents.
For now, Trump said further discussions will be handled by top members of his Cabinet, including Secretary of State Marco Rubio and Treasury Secretary Scott Bessent.
But despite the pause, uncertainty looms for global automakers that have long benefited from Mexico’s lower production costs.
Nissan isn’t alone in reassessing its options – other manufacturers are also monitoring the situation as Trump has vowed to impose reciprocal tariffs on other countries, like China and Canada, if they don’t reduce costs on American goods.
‘By making trade more reciprocal and balanced, we can reduce the trade deficit; grow the United States economy; and improve our trade relationships with trading partners to the benefit of American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses,’ Trump said in a recent memorandum.
For Mexico’s auto industry – and the thousands of jobs tied to it – the stakes couldn’t be higher.
