President Donald Trump's proposed tariffs on Mexican imports could make Nissan Motor Co. move production elsewhere, the Japanese automaker's CEO, Makoto Uchida, warned, the Daily Mail reported Monday.
Nissan is Mexico's second-largest automaker, behind only General Motors, with some 320,000 units expected to be exported from Mexico to the U.S. this fiscal year.
"If high tariffs are imposed, we need to be ready for this," Uchida said. "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."
A potential production shift could wreak havoc on a vital sector of Mexico's economy, where automotive manufacturing has increased significantly under the U.S.-Mexico-Canada Agreement in recent years.
The tariffs could threaten those cross-border supply chains that companies such as Nissan have relied on for a long time to keep costs down.
"We are exporting a large volume to the U.S., so if there's a high tariff, this would have huge implications on our business, so we need to monitor this carefully," Uchida explained.
The warning comes after Trump announced a 25% tariff on imports from both Canada and Mexico but agreed to delay them after those two nations announced additional actions to secure their borders with the U.S., according to The Hill.
Despite the pause, there is uncertainty for global automakers that have long benefited from Mexico's lower production costs, with other manufacturers also monitoring the situation, the Daily Mail reported.
Brian Freeman ✉
Brian Freeman, a Newsmax writer based in Israel, has more than three decades writing and editing about culture and politics for newspapers, online and television.
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