Nissan Urges USMCA to Keep Tariff Exemptions for Mexican-Made Vehicles

Christian Meunier, Chairman of Nissan Americas, recently stated that Nissan cannot produce entry-level models like the Sentra and Kicks in the U.S. at the same cost as in Mexico, and must rely on Mexico’s lower labor costs. He urged the U.S. government to maintain tariff exemptions for vehicles produced in Mexico during the review of the USMCA (United States-Mexico-Canada Agreement), warning that otherwise each vehicle would incur an additional $2,500 to $3,000 in tariffs, undermining affordability. Currently, vehicles made in Mexico account for more than one-third of Nissan’s U.S. sales. Meunier noted that while U.S. officials understand automakers’ concerns, trade negotiations are being hampered by non-trade issues such as immigration and drug trafficking. With the current average price of a new vehicle in the U.S. nearing $49,000, the Sentra and Kicks—both starting around $22,000—are among the few affordable options remaining in the market.