Nissan will scale back production of its best-selling model for the United States, the Rogue SUV, at its Kyushu plant in Japan over the May–July period, in response to fresh tariffs imposed by Washington. A person familiar with the matter said the move marks a significant shift in Nissan’s global manufacturing strategy and highlights the mounting pressure that international carmakers are facing under US President Donald Trump’s revised trade policies.
The United States recently introduced a 25 per cent tariff on cars manufactured overseas, a move that has sent shockwaves across the global automotive industry. Nissan, Japan’s third-largest carmaker, finds itself particularly vulnerable, given that America remains its most crucial market—contributing over a quarter of its global vehicle sales last year. Many of these vehicles were produced in Japan or Mexico.
The source, who declined to be named as the information is not yet public, said Nissan would cut Rogue production by approximately 13,000 units at its Kyushu plant over the next three months. That figure represents over 20 per cent of the 62,000 Rogues sold in the United States during the first quarter of this year.
As part of the adjustment, factory workers at the Kyushu plant will work reduced hours from May through July, with scheduled halts in production on select days. However, the plant will maintain its two-shift operation, and Nissan will reassess the situation as developments around the tariffs evolve.
President Trump on Monday hinted at the possibility of altering the tariffs slightly, stating that automakers “need a little bit of time” to adapt to the new framework. The comment, though vague, suggests some level of flexibility as the White House balances protectionist goals with market realities.
In a formal statement, Nissan said it is currently reviewing its production and supply chain structures to optimise efficiency while ensuring long-term sustainability. “Our approach will be thoughtful and deliberate as we navigate both immediate and long-term effects,” the statement read. “We remain committed to supporting our workforce and maintaining strong production capabilities.”
The Rogue, a compact SUV, has been Nissan’s flagship model in the US, accounting for nearly 246,000 sales last year, or over a quarter of its American market share. Nissan also produces the Rogue at its Smyrna plant in Tennessee, which was initially set to cut back to a single shift this April. However, the carmaker recently reversed that decision, opting to maintain two shifts due to ongoing demand.
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Other global car manufacturers are similarly grappling with the unpredictable tariff environment. Stellantis, the parent company of Chrysler, has paused production at factories in Mexico and Canada, affecting operations at five associated plants in the US and leading to the temporary layoff of around 900 American workers.
Meanwhile, Honda is reportedly shifting production of its upcoming Civic hybrid model from Mexico to Indiana in a bid to sidestep potential tariffs. The developments signal a growing trend of carmakers re-evaluating their supply chains and production footprints in North America.
Even before the latest tariff shock, Nissan had already been working on reducing its global production capacity by 20 per cent as part of a wider restructuring effort. New Chief Executive Ivan Espinosa faces mounting pressure to reinvigorate the company’s performance, particularly in the US, where Nissan has struggled due to an ageing vehicle line-up and a limited hybrid offering.
In the recently concluded financial year, Nissan cut its profit outlook three times—underscoring the scale of the challenges ahead. The latest production cut is a sobering indication of how far-reaching the implications of the US tariffs could be—not just for global trade, but also for the thousands of workers and suppliers tied to these manufacturing ecosystems.
