Mexico needs to cooperate with Trump.
Nissan CEO Makoto Uchida has expressed concerns that President Trump’s tariffs on Mexico could force the automaker to shift its production out of the country. In a statement, Uchida noted that a significant portion of Nissan’s exports to the United States comes from their Mexican manufacturing facilities. Last year alone, 320,000 units were exported from Mexico to the U.S. If tariffs increase, he warned, Nissan would be forced to consider relocating some of its production to other regions to maintain cost-effectiveness.
This move could have a significant impact on Mexico’s auto manufacturing industry. Nissan’s operations in Mexico are substantial, with nearly 670,000 vehicles produced in the country in the previous year. Of that total, more than 450,000 were exported, with the U.S. being the primary destination. Nissan is one of the largest car producers in Mexico, second only to General Motors. The company’s potential shift in production could signal a major disruption to both the local Mexican economy and its trade relationships with the U.S.
The looming threat of tariffs is a crucial issue for U.S. manufacturers with production facilities in Mexico, China, or Canada. President Trump has maintained that tariffs are an essential tool in balancing trade and securing the U.S. economy. His administration has emphasized that such measures help protect American jobs and ensure that foreign nations, like Mexico, contribute fairly to the trade relationship. Trump’s efforts to curb illegal immigration and the trafficking of illicit substances, like fentanyl, are also part of the rationale behind these tariffs. He recently engaged in talks with Mexican President Claudia Sheinbaum to discuss these issues, resulting in an agreement to deploy 10,000 Mexican soldiers to secure the southern border.
While the tariffs are currently on hold until March, companies like Nissan are carefully monitoring the situation. They understand that rising tariffs could hurt their competitiveness in the U.S. market. As part of his broader trade strategy, Trump also announced reciprocal tariffs on countries that impose additional costs on American goods. His aim is to level the playing field, reduce the trade deficit, and bolster American businesses by fostering more equitable trade practices. These measures are designed to benefit U.S. workers, manufacturers, farmers, and entrepreneurs by ensuring that foreign trade policies do not undermine the country’s economic interests.