It seems like every time President Donald Trump speaks, the automotive industry braces for another round of changes, especially when it comes to the 25 percent tariffs on foreign vehicles.
These frequent shifts in policy are creating uncertainty for manufacturers, and Nissan is feeling the pressure with its best-selling vehicle in the U.S., the Rogue.
Nissan Takes Action in Response to Tariffs
In response to the changing landscape, Nissan is scaling back production of the Rogue in Japan by 13,000 units over the next three months.
This cut represents more than 20 percent of the vehicle’s quarterly U.S. sales.
Despite this slowdown, the company reassures that it has sufficient inventory in U.S. dealerships, unaffected by the new tariffs.
A Nissan spokesperson shared with DailyMail.com, “We are reviewing our production and supply chain operations to identify optimal solutions for efficiency and sustainability.”
Though the Rogue remains a strong player, securing the ninth spot in the 2024 U.S. best-seller list, the company is adjusting its strategy to keep up with the shifting tides of U.S. tax policies.
Thankfully, the Rogue still benefits from production in Tennessee, where tariffs are less of a concern.
The Larger Challenge for Global Automakers
The Rogue isn’t the only car facing the effects of these tariffs.
Nissan, along with other global automakers, is grappling with how to sell affordable vehicles in the U.S. while managing the increased costs from the import taxes.
The real issue lies in the impact these tariffs will have on prices for American consumers, with consumer advocates warning of skyrocketing costs for both cars and insurance.
In fact, Trump has acknowledged the strain on automakers, stating that he’s considering changes to the auto levy.
This is likely a response to concerns that these taxes are hurting manufacturers and, ultimately, consumers.
His promise to revive U.S. manufacturing through tariffs hasn’t delivered the expected results yet.
The Effects on Nissan’s Popular Models
Nissan’s commitment to U.S. manufacturing has kept jobs intact in its Tennessee plant, where production of the Rogue continues despite the shifting policy.
However, the company’s budget-friendly models, such as the Sentra and Versa, are being built in Mexico and will face the full brunt of the tariffs.
The Versa, priced under $20,000, is the last remaining vehicle in the U.S. market at that price point.
However, Nissan plans to discontinue it in 2026.
The Sentra, priced starting at $23,000, was set to be the least expensive new car in the U.S. by 2026, but the looming tariffs will likely raise its price, making these once-affordable models out of reach for many consumers.
Rising Vehicle and Insurance Prices
The broader trend has been a steep increase in car prices.
In 2024, the average price for a new vehicle in the U.S. hit $48,000, a number that’s only been climbing for years.
Along with that, car insurance premiums have also surged, making it even harder for Americans to afford a new vehicle.
The additional burden of tariffs on car parts and vehicles could further exacerbate these rising costs, advocates argue.
The fear is that fewer cars will be shipped to the U.S. as manufacturers look to avoid tariffs, which could lead to an even greater strain on availability and price stability.
Infiniti’s Response to Tariffs
Nissan’s luxury division, Infiniti, has already begun adjusting to the tariffs by halting shipments of its QX50 and QX55 models to the U.S.
These vehicles, which were already facing an uncertain future in 2026, will now be sent to other markets without the burden of the 25 percent tax.
This move highlights the complexity of global manufacturing and the decisions automakers must make to stay competitive while managing U.S. tax policies.
Other Automakers Adjust to the Changing Landscape
Nissan isn’t the only company making significant changes.
General Motors (GM) has ramped up production of American-made pickup trucks but recently laid off 200 workers.
Ford, meanwhile, has rolled out large discounts on certain vehicles to keep them affordable for consumers.
Stellantis, the parent company of Jeep, Dodge, Chrysler, and Ram, has also made the tough decision to lay off 900 employees from its U.S. manufacturing plants.
What Lies Ahead?
As the landscape for automakers continues to evolve under President Trump’s policies, the future remains uncertain.
The combination of rising costs, shifting production strategies, and the ongoing tariff battle means that American consumers may continue to feel the squeeze in the years to come.
The big question now is how much more change the industry will face—and whether these policies will help or harm the overall market in the long run.