Nissan Faces U.S. Tariff Tensions: Halts U.S. Orders for Mexican-Built Infiniti SUVs

Nissan Motor has stopped taking new U.S. orders for its Mexican-built Infiniti SUVs due to tariffs imposed by the U.S., affecting its joint venture with Mercedes-Benz. The company will maintain its Tennessee plant's Rogue production while facing economic challenges and leadership changes.

Nissan Motor announced on Thursday that it is halting new orders from the United States for two Infiniti SUV models built in Mexico. This decision follows the recent imposition of auto tariffs by U.S. President Donald Trump, causing Nissan to scale back operations at its collaborative plant with Mercedes-Benz.

The Japanese automaker will continue two shifts of Rogue SUV production at its Smyrna, Tennessee facility, following a previous announcement to cut one shift. However, it will stop accepting additional U.S. orders for the Infiniti QX50 and QX55 models produced at the COMPAS plant in Mexico, which serves multiple markets including the Middle East and Canada.

Facing the brunt of a 25% global car and truck tariff effective from Thursday, Nissan has been struggling in the U.S. market due to an outdated lineup and a scarcity of hybrid options. This economic pressure contributes to its financial instability, leading to profit forecast cuts and a downgrade of its debt status. Newly appointed CEO, Ivan Espinosa, aims to steer the company towards efficient future vehicle development.

(With inputs from agencies.)