The Trump auto tariffs impact Nissan in a major way. The Japanese automaker announced it will no longer accept U.S. orders for its Mexican-built Infiniti QX50 and QX55 SUVs. This move comes in direct response to President Donald Trump’s 25% tariffs on global auto imports, which took effect Thursday. Nissan’s decision marks a significant retreat from its U.S. operations involving the COMPAS plant it co-runs with Mercedes-Benz in Mexico.
The two Infiniti models—QX50 and QX55—had been exclusively exported to the U.S. from Mexico. According to Mexican government export data, these SUVs had not been shipped to any other market until recently. Now, Nissan says production will continue for other destinations, including Mexico, Panama, the Middle East, and Canada. However, the company has not disclosed how much volume will shift to these markets.
A Nissan spokesperson based in Japan confirmed the export plan but did not elaborate on long-term production strategies for the Infiniti models. For now, U.S. consumers will no longer have access to new orders of the popular SUVs, dealing a blow to Infiniti’s North American presence.
The decision comes amid broader challenges for Nissan in the United States. The company has been losing ground due to an ageing model lineup and limited availability of hybrids and EVs. With high exposure to Mexican exports, Nissan is more vulnerable to the new tariffs than any other Japanese automaker.
In a separate move, Nissan reversed an earlier production cut at its Smyrna, Tennessee, facility. Initially planning to eliminate one of two shifts building the Rogue SUV, the company has now announced it will maintain both shifts. This adjustment suggests Nissan is trying to offset the loss of Mexican exports with stronger domestic output.
Financially, Nissan has had a rough year. The automaker downgraded its profit forecast three times and recently saw its credit rating fall to “junk” status. The company’s new CEO, 46-year-old Ivan Espinosa, has pledged swift reforms. A Mexican national and former head of product planning, Espinosa aims to reduce the development timeline for new vehicles drastically.
Meanwhile, Mercedes-Benz continues to manufacture the GLB SUV at the same COMPAS facility in Mexico. It remains unclear how the tariffs will affect its operations.
The Trump auto tariffs impact Nissan beyond simple production shifts. They are reshaping supply chains, testing corporate flexibility, and straining U.S.-Mexico-Japan trade dynamics. As pressure builds, Nissan must now balance recovery efforts with urgent innovation and strategic realignment in its largest markets.
