Trump Tariffs Stir Nissan Move

In a bold move, Trump hints at tariffs on imported cars, spurring Nissan to mull leaving Mexico. Global allies monitor the U.S.’s tariff shift with cautious concern.

**Trump Threatens Tariffs on Imported Cars, Prompting Nissan to Consider Leaving Mexico**

February 14, 2025 – In a recent announcement, former President Donald Trump revealed his intent to impose new tariffs on imported cars by April 2, 2025. Speaking from the Oval Office, Trump jokingly mentioned not implementing these on April 1st to avoid a clash with April Fool’s Day. He emphasized the financial impact of such measures but insisted on the necessity of introducing tariffs on the specified date.

In the wake of Trump’s announcement, Mexican President Claudia Sheinbaum Pardo sent a letter to Trump advocating against a proposed 25% tariff on aluminum and steel. She argued that the U.S. holds a $6.897 billion trade surplus with Mexico in these sectors, thereby contradicting Trump’s rationale for the tariffs.

Meanwhile, the Japanese automaker Nissan, which annually exports approximately 320,000 vehicles to the U.S. from Mexico, expressed concern. CEO Makoto Uchida noted potential plans to relocate production if the tariffs come into effect, posing significant challenges for Nissan’s operations given their substantial market share in the United States.

President Sheinbaum Pardo highlighted that if Nissan exits Mexico, it could lose its grip on the domestic market. She mentioned the advanced technology present in Nissan’s production facilities in Mexico, noting their importance to the national automotive sector.

**Additional Context: Global Reactions to U.S. Tariff Plans**

In addition to the above developments, the broader international community keenly watches the U.S.’s shifting tariff landscape. On February 13, 2025, Trump signed a memorandum directing his advisors to reassess tariffs imposed by other nations on U.S. goods. This move aims to establish reciprocal tariffs that match those of other countries, adjusting for perceived economic imbalances.

Trump’s directive has stirred discussions among global trade allies, many of whom are concerned about the economic ripple effects of such unilateral U.S. policies. Trade organizations have expressed worries over increased costs potentially trickling down to consumers. Countries like Germany and Japan have already begun lobbying for more diplomatic resolutions, emphasizing the importance of maintaining stable trade relations.

While some industries may benefit from enhanced protection, experts caution that prolonged trade tensions might hinder international economic cooperation in the long run. As countries brace for potential impacts, ongoing negotiations could shape future global trade dynamics.