The measure was previously reported by the Japanese newspaper Nikkei. The 25 percent tariffs imposed by Trump on imported cars and parts, along with retaliatory measures from Canada, have forced Mazda and other foreign brands to maintain a delicate balance while seeking short-term relief amidst long-term consequences. Japanese automakers are particularly exposed to U.S. border controls, given the size and importance of the market for them.
The compact crossover SUV CX-50 accounted for approximately 15 percent of the approximately 72,000 passenger vehicles that Mazda sold in Canada in 2024. Trump's tariffs could increase passenger car prices in the United States by more than 14 percent. According to Christopher Richter, a senior analyst at CLSA Securities Japan, Trump hinted earlier this week that he could temporarily ease automotive industry tariffs, but did not specify the duration of the possible suspension.
The U.S. President, a "fan" of tariffs, announced in late March a 25 percent tariff on cars that harshly affects Mexico. Amid negotiations between the United States and Japan over reciprocal tariffs, Mazda announced it would suspend exports to Canada of a model it manufactures on U.S. soil as a temporary countermeasure to President Donald Trump's tariffs, a spokesperson reported this Friday, April 18.
Mazda, a Japanese automaker, will halt production of CX-50 sports utility vehicles destined for Canada at its Alabama plant starting May 12. Production of the CX-50 for markets outside Canada will continue. Additionally, tariffs on auto parts will take effect in May.
While Toyota has stated it will stay the course for now, Nissan has suspended U.S. orders for SUVs produced in Mexico, while Honda announced it will transfer production of the hybrid version of its Civic from Japan to the United States.
Japan is expected to offer the United States a broad new trade agreement to eliminate the 24 percent reciprocal tariff announced by Trump on "Liberation Day." In a meeting with Trump in February, Prime Minister Shigeru Ishiba promised to buy more U.S. liquefied natural gas and increase investment in the United States to one trillion dollars.
Japanese negotiators have also highlighted Japan's position as the largest investor in the United States, including plants built by Japanese automakers that have created jobs for Americans. Furthermore, Japan has emphasized that if reciprocal and automotive tariffs are maintained, it will reduce the "land of the rising sun" capacity to invest in the United States. The de facto 90-day deadline for tariff suspension is likely to influence negotiations, especially since the Trump administration is monitoring public opinion with an eye toward achieving concrete results before next year's midterm elections.
