Mazda will pause exporting one model type to Canada that it makes in the U.S. as a temporary countermeasure to President Donald Trump’s tariffs, a spokesperson said Friday.
The Japanese automaker will halt production of CX-50 sport utility vehicles destined for Canada at its Alabama plant effective May 12. Production of the CX-50 for markets outside of Canada will continue.
Trump’s 25% tariffs on imported cars and parts, along with Canada’s retaliatory duties, have forced Mazda and other foreign brands to walk a fine line by balancing short-term relief with long-term consequences. Japanese carmakers are particularly exposed to U.S. border controls, given the size and importance of the market to them.
The CX-50 compact crossover SUV accounted for about 15% of the some 72,000 passenger vehicles Mazda sold in Canada in 2024.
Trump’s levies could raise U.S. passenger car prices by more than 14%, according to Christopher Richter, a senior analyst at CLSA Securities Japan.
Trump hinted earlier this week that he might temporarily relieve the auto industry from tariffs but didn’t specify how long any potential pause would be. He announced auto tariffs of 25% in late March with tariffs for completed vehicles taking effect April 3, and tariffs for automotive parts set to start 30 days later.
While Toyota has said it will stay the course for now, Nissan is halting U.S. orders for SUVs built in Mexico while Honda said Wednesday it will shift production of the hybrid version of its Civic from Japan to the U.S.
