Mazda will shut down assembly lines for some of its CX-50 production in Canada at its Huntsville, Alabama plant, the first major automaker to halt U.S. production because of the tariffs. Following American tariffs and accompanying Canadian countermeasures, carmaker Mazda said that it will stop producing CX-50 automobiles headed for Canada, demonstrating the impact of Donald Trump’s “Liberation Day” tariff policy.
Carmaker Mazda will stop manufacturing in the United States due to Trump’s tariffs
The break, according to Mazda, will start on May 12 at its plant in Huntsville, Alabama, which produces the CX-50 automobile for Canadian markets. Until now, the length of the suspension has not been confirmed by the Japanese carmaker. The remaining inventory will be sold by dealers nationwide for as long as possible, according to Sandra Lemaitre, a spokesperson for Mazda Canada. For example, recently, the carmaker Mazda announced that the group known as Mazda Toyota Manufacturing (MTM) will continue to produce the Mazda CX-50 for the North American market without compromising the number of units to be delivered. Keep in mind that MTM is the only Mazda vehicle assembly plant in the United States. We hope to make the best use of it to help our company grow.
The carmaker also stated that they will keep an eye on the circumstances, including government negotiations, market trends, and policy developments, and will think about adaptable and sensible solutions as needed. The North American production ramp-up will not significantly impact Mazda Toyota Manufacturing operations in the long run. Mazda may withdraw the CX-50 from the market or raise its price in Canada if the US government’s tariff policy remains unchanged. Moreover, the dealers’ current inventory will be the only supply accessible for the foreseeable future; thus, Canadian purchasers interested in a CX-50 will need to move fast.
Despite US tariffs, a known carmaker’s industry sales have been rising over the last months
Major Japanese manufacturers reported a spike in March sales in the United States, attributed to a last-minute rush to purchase vehicles before US President Donald Trump’s import duties went into force. Numbers released Thursday showed that Toyota Motor had an 8% increase in sales to 231,336 units from the previous year, while Honda Motor saw a 13% increase. Nissan Motor reported a 3.4% decrease in global sales to 353,463 units, which was mitigated by a 10% increase in domestic sales. Automakers are suffering, and American customers may see a double-digit increase in car costs as a result of Trump’s 25% duty on imports of all foreign-made automobiles, which went into effect on April 3.
The Japanese carmaker industry is more vulnerable than others, and although Toyota has stated that it would continue as is for the time being, other significant manufacturers are already taking steps to lessen the impact. As mentioned above, Mazda Motor has announced that it will cease production in the United States of a certain model variant that it ships to Canada. Honda is to move its Civic hybrid production from Japan to the United States, and Nissan is stopping US orders for SUVs made in Mexico. Moreover, Toyota’s worldwide sales, which include those of its subsidiaries Daihatsu Motor and Hino Motors, increased 11% from the previous year to just over 1 million units in March.
In March, 834,467 cars were sold outside of Japan, setting a record and representing a 6% rise. It is important to highlight that the Japanese corporation had a nearly 36% increase in domestic sales and a 7% increase in total North American sales. With 10.8 million cars sold in 2024, the company maintained its position as the leading automaker in the world for the sixth consecutive year, despite a decline in sales from the year before.
