Overview
Nissan Motor Co. (Tokyo:7201) announced that it will implement cost‑reduction measures on models built in Mexico in order to mitigate the impact of a 25% tariff imposed by the United States on those vehicles. The move is intended to preserve the competitiveness of the affected lineup in the U.S. market.
Details
Chief Executive Officer Ivan Espinosa told Bloomberg Television that the 25% duty is "making part of the lineup that we are bringing in from Mexico difficult to sell" and that the company is "working very strongly on making them more competitive" amid heightened affordability pressure in the United States. Nissan is concentrating its cost‑cutting efforts specifically on the Mexico‑produced vehicles subject to the tariff as trade negotiations between the United States, Mexico and Canada continue beyond the original July 1 deadline for a renewed free‑trade agreement.
Context
The automaker has previously expressed dissatisfaction with the higher levies introduced during the Trump administration and has sought relief on affordability grounds, noting that new‑vehicle prices are hovering near record highs. By focusing on cost reductions for the tariff‑affected models, Nissan aims to offset the price disadvantage created by the duties while trade talks remain unresolved.