In a move reflecting the ongoing strain of U.S.-Mexico trade tensions, Nissan has stopped accepting new orders from the U.S. for two of its Infiniti SUV models—the QX50 and QX55—both produced at the COMPAS plant in Aguascalientes, Mexico. The decision, reported by Reuters, marks a significant shift in Nissan's North American strategy and highlights the wider impact of newly imposed U.S. tariffs under President Donald Trump's trade policies.
The COMPAS facility, jointly operated by Nissan and Mercedes-Benz, has been a cornerstone of Nissan’s North American manufacturing network. However, the automaker is now limiting its output from the plant to international markets, such as Canada and countries in the Middle East, according to a spokesperson from the company’s Japan headquarters. Nissan has yet to disclose what portion of production will be diverted to these markets.
Tariff Pressures Prompt Strategic Realignment
The suspension of U.S. orders for the QX50 and QX55 comes as Nissan grapples with steep tariffs introduced by the Trump administration, which have targeted Mexican-made vehicles in an attempt to curb trade imbalances. Nissan, which exports more vehicles from Mexico to the U.S. than any other Japanese carmaker, is particularly exposed to these new economic pressures.
While the Infiniti models will no longer be available for U.S. buyers, Nissan is doubling down on its operations in Tennessee. The company has reversed a prior decision to cut a production shift for its Rogue SUV at its Smyrna plant. Instead, it will maintain both shifts, a move likely intended to offset production losses from Mexico and to strengthen its domestic supply amid political scrutiny.
Challenges Mount in U.S. Market
The decision comes at a time when Nissan is facing headwinds in the American automotive market. A dated product lineup and a limited hybrid offering have placed the company at a competitive disadvantage in an industry increasingly focused on electrification and innovation.
Adding to the internal shake-up, Nissan recently unveiled plans to restructure its global management by slashing the number of top executives by 21%—from 42 to 33—as part of a broader initiative to cut costs and improve decision-making. The new structure will come into effect in the 2025 fiscal year.
“These changes are designed to empower regions and establish clear roles and responsibilities within the organization,” Nissan said in a statement, framing the move as part of a global effort to streamline operations.
Looking Ahead: A Market in Transition
As Nissan navigates the complexities of shifting trade policies, evolving consumer demand, and internal restructuring, the halt in U.S. orders for its Mexico-made Infiniti SUVs underscores a broader trend of automakers rethinking global supply chains. The repercussions of this decision will likely be felt not only in Mexico but also in U.S. showrooms, where Infiniti's SUV lineup now faces a major gap.
Whether this tactical retreat from Mexican exports becomes a long-term pivot or a temporary adjustment remains to be seen—but one thing is clear: Nissan, like much of the global auto industry, is entering a new era shaped as much by politics as by product.