Mazda Motor Corp. will suspend exports of its U.S.-built CX-50 compact SUV to Canada starting May 12, a temporary response to the escalating cost pressures triggered by President Donald Trump’s 25% tariffs on imported cars and auto parts. The decision reflects the growing strain on foreign automakers as they adjust operations in the face of new trade restrictions.
The move affects only Canadian-bound CX-50s assembled at Mazda’s plant in Alabama. However, production of the model for the U.S. and other markets will continue. The CX-50 accounts for roughly 15% of Mazda’s total Canadian vehicle sales in 2024 when the company sold around 72,000 passenger vehicles in the country.
Trump’s tariffs, effective April 3 for fully assembled vehicles and scheduled to expand to parts by May 3, have disrupted cross-border auto trade. Canada has introduced retaliatory measures, further complicating logistics and cost structures for Japanese automakers, who rely heavily on North American operations.
Mazda’s decision follows similar adjustments from other Japanese brands. While Nissan is suspending U.S. orders for some Mexico-built SUVs, Honda plans to shift production of its hybrid Civic from Japan to the U.S. Toyota, for now, is maintaining its existing strategy.
Although Trump has indicated the possibility of temporary tariff relief for automakers, no concrete timeline has been announced. Industry analysts estimate the tariffs could increase U.S. passenger car prices by more than 14%, raising further concerns for manufacturers and consumers alike.
