Nissan, Toyota warn of pulls
- Nissan, Toyota, Hyundai and Honda warned Trump officials they could stop selling their cheapest U.S. models if the USMCA trade pact is weakened. - The warning comes before a July 2026 USMCA review, with cheap cars already scarce as average U.S. new-vehicle prices hover near $50,000. - The fight centers on parts moving across North America without new tariffs or tighter rules. (reuters.com)
Foreign automakers told the Trump administration they may pull their cheapest cars from the U.S. if the U.S.-Mexico-Canada Agreement is weakened in this year’s review. (reuters.com) Reuters reported April 27 that Toyota, Honda, Nissan and Hyundai warned U.S. officials that low-cost models could become unprofitable if the trade pact is not renewed or is watered down. (reuters.com) Those vehicles depend on parts and assembly work spread across the United States, Mexico and Canada, with tariff-free crossings built into the current agreement. (reuters.com) (brookings.edu) The trade fight lands in a market that has already thinned out at the bottom end. Cars.com said April 29 that only seven new models still start below $25,000 in the U.S. (cars.com) Kelley Blue Book data cited by Cox Automotive put the average new-vehicle transaction price at $50,326 in December 2025, showing how little room remains for entry-level cars. (mtsinsights.com) USMCA’s first joint review is scheduled to begin on July 1, 2026. Trade lawyers and policy analysts say the process could reopen rules on regional content, labor enforcement and the agreement’s broader structure. (bsigroup.com) (csis.org) Brookings said the Office of the United States Trade Representative started the review process last year with a Federal Register notice seeking comments ahead of the three-country talks. (brookings.edu) The White House did not immediately respond to Reuters’ request for comment on the automakers’ warning. Mexico and Canada have also looked to the review as a chance to ease earlier U.S. duties. (reuters.com) If the companies follow through, the cars most likely to disappear first are the small, low-margin models that still give buyers a way into a new vehicle for less than the market average. (reuters.com) (cars.com)
