On the Dash:
- Tariffs on Mexico-made entry-level vehicles increase per-car costs by $2,500–$3,000.
- Nissan relies on production in Mexico to maintain competitive pricing for models like the Sentra and Kicks.
- Ongoing USMCA negotiations may influence dealership pricing and vehicle availability for 2026.
Nissan is pressing U.S. officials to ease tariffs on vehicles made in Mexico, citing the need to keep entry-level models affordable as average new car prices hover near record highs.
Christian Meunier, chairman of Nissan Americas, said at the New York Automotive Forum, ahead of the New York auto show, that producing the Sentra compact sedan and Kicks subcompact crossover in the U.S. would be prohibitively expensive.
Vehicles produced in Mexico accounted for more than one-third of Nissan’s U.S. sales last year. In addition to the Sentra and Kicks, this included the now-discontinued Versa compact sedan and Infiniti QX50 and QX55 crossovers. Tariffs on the Kicks and Sentra add roughly $2,500 to $3,000 per vehicle, Meunier said.
The Sentra starts at $22,600, and the Kicks begins at $22,430. By comparison, new car prices averaged $49,353 last month, down slightly from a record $50,326 in December, according to Kelley Blue Book. The Versa, which had a base price of $17,390, was the last 2025 U.S. model sold for under $20,000.
The U.S.-Mexico-Canada Agreement (USMCA), which governs trade between the three countries, is scheduled for a mandatory review before a possible extension on July 1. Once considered routine, the review has become contentious. Notably, President Donald Trump has pushed for additional concessions from Canada and Mexico, tying trade to issues such as migration, drug trafficking, and defense.
Meunier said U.S. policymakers understand Nissan’s concerns about affordability, but trade negotiations with Canada and Mexico remain complicated by other issues.
