Nissan Temporarily Halts Production of Three Models in the US for Canada

Japanese automaker Nissan Motor has announced a temporary halt in the production of three vehicles at its plants in the US, designated for the Canadian market. The decision is linked to trade tariffs imposed by the US and Canada. The restrictions affect the Pathfinder and Murano SUVs, as well as the Frontier pickup truck.

The company's official statement appeared on Wednesday evening, but the exact timeline for the production stoppage is not specified. Nissan emphasized that the measures are temporary and expressed hope for a swift resolution of the trade dispute between the countries.

"This is a short-term and temporary measure, and we remain hopeful that ongoing discussions between the U.S. and Canadian governments will lead to a successful agreement in the near future," Nissan said in a statement.

The first report of Nissan's issues came from Japanese newspaper Nikkei, which indicated that production had been frozen since May. Meanwhile, key models for the Canadian market — Versa, Sentra, and Rogue — continue to be supplied from Mexico and Japan, accounting for 80% of the brand's sales in Canada.

Pathfinder and Murano are assembled at the Tennessee plant, while Frontier is produced in Mississippi. The tariff restrictions are a result of the trade conflict: in April, the Trump administration imposed a 25% tariff on car imports, prompting retaliatory measures from Canada. Previously, Mazda also halted car shipments to Canada from its Alabama plant, redirecting production capacity to the US market.

Although Canada is not the largest market for Nissan (last year, about 104,000 cars were sold there, representing only 3% of the company's global sales), the situation exacerbates the already challenging position of the brand. In its March report, Nissan recorded a $4.5 billion loss, with credit ratings lowered to “junk” status.

Nissan's problems extend beyond tariffs: the company faces declining demand, an outdated model lineup, and a burdensome debt load. According to Reuters, the automaker has even asked suppliers to delay payments to maintain liquidity.