Nissan Executive Admits U.S. Can't Build Affordable Cars, Urges Tariff Relief for Mexican-Made Models

Nissan Americas Chairman José Muñoz recently stated publicly that due to high production costs, the company cannot manufacture entry-level models like the Sentra and Kicks in the United States. To maintain affordability, Nissan is lobbying the U.S. government for tariff exemptions on vehicles produced in Mexico. Currently, each of these models incurs tariffs of approximately $2,500 to $3,000, despite having a starting price of only around $22,000. Data shows that Mexican-built vehicles account for more than one-third of Nissan’s U.S. sales. With the U.S.-Mexico-Canada Agreement (USMCA) set for review by July, Nissan fears that trade negotiations could be derailed by non-trade issues such as immigration and drug policy, potentially disrupting the supply of affordable vehicles. The current average price of a new car in the U.S. is nearly $49,000, making low-cost options scarce—the Versa was once the only new vehicle priced below $20,000.