By Deji Osas
Nissan is scaling back production of its top-selling vehicle in the U.S., the Rogue, by 13,000 units over the next three months due to the impact of President Donald Trump’s 25% automotive tariffs. This reduction, which accounts for over 20% of the vehicle’s quarterly sales in the U.S., comes as global automakers grapple with the shifting dynamics of tariffs and trade policies.
The Rogue, which starts at $28,590, has consistently been a strong performer in the U.S. market, ranking ninth in 2024’s best-selling vehicles list. Despite the production cut, Nissan remains confident in its ability to meet demand, noting that the company currently has ample inventory available at U.S. retailers that remains unaffected by the new tariffs. A Nissan spokesperson explained that the company is “reviewing our production and supply chain operations to identify optimal solutions for efficiency and sustainability.”
Although this move does not signal the end for the Rogue, it highlights the ongoing challenges posed by tariff policies on foreign-made vehicles. The Rogue, alongside other popular models, is also manufactured at a Nissan plant in Tennessee, which remains insulated from the tariff burden. However, production of models like the Nissan Sentra and Versa, which are built in Mexico, could face higher costs due to the tariffs, potentially driving up their prices.
The Trump administration’s tariffs on foreign-made cars have prompted concerns from consumer advocates, who warn that these taxes could lead to significant price hikes for American consumers. With the average cost of a new car in the U.S. already approaching $48,000, advocates fear that the tariffs will exacerbate the burden on buyers. Furthermore, insurance premiums for vehicles have also risen faster than inflation, adding another strain on the affordability of cars.
In response to the tariffs, Nissan has maintained a second shift at its Tennessee plant to ensure U.S.-based production of the Rogue continues. However, rumors of a potential cut to this shift have circulated, though the company has not yet made any changes. Nissan’s flexibility in adjusting its manufacturing operations across various global plants demonstrates the ongoing struggle to balance production costs with trade policy shifts.
The issue extends beyond Nissan, as other automakers such as GM, Ford, and Stellantis are also adjusting their strategies in response to the tariffs. GM has ramped up production of American-made trucks but has also laid off workers, while Ford has offered large discounts on some models. Stellantis, the parent company of Jeep, Dodge, Chrysler, and Ram, has laid off hundreds of U.S. manufacturing employees due to tariff-related challenges.
The ongoing tariff saga continues to shape the automotive industry, leaving both manufacturers and consumers navigating the complex web of international trade policies, vehicle pricing, and production strategies. As automakers adjust to this shifting landscape, it remains to be seen how the long-term effects of tariffs will reshape the U.S. automotive market.
