Nissan Motor has paused U.S. production of three of its models, Pathfinder, Murano, and Frontier, for the Canadian market, as tensions over cross-border auto tariffs escalate between the U.S. and Canada.
The Japanese automaker confirmed the temporary suspension in a statement, citing mutual import levies that have disrupted the North American automotive supply chain. The move is believed to have taken effect in May 2025, though Nissan did not confirm specific dates.
“This is a short-term and temporary measure,” Nissan stated. “We remain hopeful that negotiations between both governments will yield a resolution soon.”
The affected models, assembled in Tennessee and Mississippi, are among several vehicles impacted by the 25% auto import tariffs imposed by the Trump administration in April. Canada retaliated with countermeasures shortly after.
Nissan emphasised that 80% of its Canadian vehicle sales, including top-sellers like the Versa, Sentra, and Rogue, remain unaffected. These vehicles are sourced from plants in Japan and Mexico.
Canada represents just 3% of Nissan’s global sales, with approximately 104,000 vehicles sold there last fiscal year. This figure is less than half the brand’s sales volume in Mexico and a tenth of what it achieves in the U.S.
However, the suspension highlights deeper troubles at the carmaker. Nissan reported a net loss of $4.5 billion for the year ending in March 2025. It faces a maturing debt of nearly 700 billion yen ($4.79 billion) and has seen its credit rating downgraded to junk by all three major rating agencies.
In an effort to conserve cash, Nissan has also asked some suppliers to delay payment terms, according to sources cited by Reuters. The pause in Canadian-bound production is the latest sign of pressure mounting on automakers as geopolitical trade policies ripple through an already fragile global market.
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