The U.S. imposed 25% tariffs on imported vehicles and parts, effective April 3, 2025, with tariffs on automotive parts following 30 days later. Canada’s reciprocal duties have further complicated trade for automakers. The CX-50, a compact crossover SUV, represented about 15% of the approximately 72,000 vehicles Mazda sold in Canada in 2024. The tariffs could increase U.S. car prices by over 14%, according to Christopher Richter, a senior analyst at CLSA Securities Japan.
Mazda’s pause in CX-50 exports to Canada aims to mitigate the financial impact of these trade measures while maintaining operations for other regions. Japanese automakers, heavily reliant on the U.S. market, face significant challenges due to these border policies. The Nikkei first reported Mazda’s decision.
President Trump recently suggested a possible temporary tariff relief for the auto industry but provided no details on its duration. Meanwhile, other Japanese automakers are adjusting strategies. Toyota Motor Corp. plans to maintain its current approach, while Nissan Motor Co. has paused U.S. orders for SUVs made in Mexico. Honda Motor Co. announced on Wednesday that it will relocate production of its hybrid Civic model from Japan to the U.S.
Mazda’s strategic adjustment reflects the broader efforts of global automakers to navigate evolving trade conditions while sustaining market presence. The company continues to evaluate long-term solutions to ensure stability in its operations and supply chain.
