President Donald Trump’s recent imposition of a 25% tariff on imported vehicles has prompted several automakers to adjust their U.S. operations. The tariffs went into effect last week on Thursday, April 3. In addition, the White House has announced additional tariffs on auto parts, which are set to take effect on May 3. British automaker Jaguar Land Rover (JLR) and Japanese automaker Nissan are among the companies rethinking their U.S. strategies in response to the changes.
In response to the tariffs, JLR will suspend its U.S. shipments for a month. While the automaker acknowledges that the U.S. is a crucial market for its luxury brand, it is using the pause to reassess its business strategy under the new trading conditions. JLR’s shipments are expected to resume within two months, and the company estimated that its current U.S. inventory levels should be enough to support 60 days’ worth of supply.
The new tariffs pose a significant challenge for troubled Nissan, which has been struggling in the U.S. market due to an aging vehicle lineup and lack of hybrid vehicle options. The Japanese automaker is especially susceptible to the tariffs due to its heavy reliance on exports from Mexico to support its U.S. inventory.
In response to the tariffs, the automaker will cease accepting new orders from the U.S. for the Infiniti QX50 and QX55 SUVs. Both models are assembled at the COMPAS plant, a joint venture with Mercedes-Benz, in Mexico. The automaker plans to minimize operations at the Mexican facility and refocus production at its Tennesse plant, where it continues to produce the Rouge SUV.
