How US tariffs could force Nissan to move operations outside of Mexico

• Nissan’s CEO said the car manufacturer may be forced to shift its operations outside of Mexico if 25% tariffs by the Trump administration are imposed. He said over the weekend that the company needs to be prepared and may need to “transfer production… elsewhere” while adding Nissan is “monitoring the situation.”
• If Nissan were to leave Mexico, potential destinations could reportedly include locations in Tennessee, Mississippi or expanding operations in Asia.
• Nissan is not the only industry giant considering moving out of Mexico amid Trump’s threat of tariffs.

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Nissan’s CEO said the car manufacturer may be forced to shift its operations outside of Mexico if 25% tariffs by the Trump administration are imposed. He said on Sunday, Feb. 16, the company needs to be prepared and may need to “transfer production… elsewhere” while adding Nissan is “monitoring the situation.”

What would it mean for Mexico?

Nissan’s departure would be a major blow to Mexico’s auto production. The company operates three plants in the country. Nearly 670,000 vehicles were reportedly produced by Nissan in Mexico in 2024 and more than 456,000 of those were exported. Nissan said 320,000 vehicles are exported from Mexico to the United States each year

If Nissan were to leave Mexico, potential destinations could reportedly include locations in Tennessee, Mississippi or expanding production in Asia.

Are other automakers considering a move?

Nissan is not the only industry giant considering moving amid President Donald Trump’s threat of tariffs. Late last month, reports suggested General Motors was potentially moving part of its vehicle manufacturing to the U.S. in case Trump’s tariffs move forward. GM reportedly employs more than 25,000 people across four plants in Mexico. GM’s CEO said she hopes tariffs can be avoided.

Why are the tariffs not imposed yet?

Mexican President Claudia Sheinbaum was able to pause U.S. tariffs for a month after she promised to send 10,000 troops to the southern border to combat drug trafficking. The agreement also includes a commitment by the United States to help prevent the illegal flow of firearms into Mexico.