logo
Nissan, Mazda halt US production of vehicles for Canada

Nissan, Mazda halt US production of vehicles for Canada

NHK16-07-2025
Japanese automakers Nissan and Mazda will continue suspending US production of vehicles destined for Canada. This may last until the outcome of tariff talks between the two nations is known.
Canada imposed a 25-percent tariff on automobile imports from the US. This is in retaliation for the same-rate tariffs slapped on by the Trump administration.
Since May, Nissan has halted production of three models for Canada at plants in the US states of Tennessee and Mississippi. This includes large SUVs.
Mazda has also paused production of some models for Canada at its Alabama plant since May. In addition, it has switched production lines to making vehicles for the US domestic market.
The automakers say they are taking these measures to hold down the tariff burden when exporting products from the US to Canada.
Nissan officials said they hoped the US and Canada would reach a tariff agreement.
Mazda officials have said they will consider flexible and appropriate measures while carefully assessing tariff negotiations.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump tariffs leave costly China supply question unanswered
Trump tariffs leave costly China supply question unanswered

Japan Times

time10 hours ago

  • Japan Times

Trump tariffs leave costly China supply question unanswered

U.S. President Donald Trump's recent flurry of trade deals have given Asian exporters some clarity on tariffs, but missing are key details on how to avoid punitive rates that target China's supply chains. Trump unveiled tariffs of 20% for Vietnam and 19% for Indonesia and the Philippines, signaling those are the levels the U.S. will likely settle on for most of Southeast Asia, a region that ships $352 billion worth of goods annually to the U.S. He's also threatened to rocket rates up to 40% for products deemed to be transshipped, or re-routed, through those countries — a move largely directed at curbing Chinese goods circumventing higher U.S. tariffs. But still unclear to manufacturers is how the U.S. will calculate and apply local-content requirements, key to how it will determine what constitutes transshipped goods. Southeast Asian nations are highly reliant on Chinese components and raw materials, and U.S. firms that source from the region would bear the extra tariff damage. That's left companies, investors and economists facing several unanswered questions about Trump's tariffs that appear aimed at squeezing out Chinese content, according to Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore. "Is that raw materials? All raw materials? Above a certain percentage?' she said. "How about parts? What about labor or services? What about investment?' In an agreement with Indonesia last week, the White House said the two countries would negotiate "rules of origin' to ensure a third country wouldn't benefit. The deal with Vietnam earlier this month outlined a higher 40% tariff rate for transshipped goods. And Thai officials, who have yet to secure a deal, detailed that they likely need to boost local content in exports to the U.S. The Trump administration isn't providing much clarity on the matter right now. U.S. officials are still working out details with trading partners and looking at value-based local content requirements, to ensure exports are more than just assembled imported parts, according to a person familiar with the matter, who didn't want to be identified discussing private talks. A senior Trump administration official also said this week that details on the approach to transshipment are expected to be released before Aug. 1, the deadline for when higher U.S. tariffs kick in. Some factories are already adjusting their supply chains to comply with rules that will require more locally made components in production. Frank Deng, an executive at a Shanghai-based furniture exporter with operations in Vietnam — and which gets about 80% of business from the U.S. — said in an interview his firm is making adjustments as authorities appear to be more strictly enforcing country-of-origin rules. Vietnam has always had specific local content requirements for manufacturers, Deng added, including that a maximum of 30% of the volume of raw materials originates from China, and the value after production in Vietnam must be 40% higher than the imported raw materials. "We've been struggling to meet all the standards so that we can still stay in the game,' Deng said. "But I guess that's the only way to survive now.' For most of Southeast Asia, reducing the amount of Chinese-made components in manufacturing will require a complete overhaul of their supply chains. Estimates from Eurasia Group show that Chinese components make up about 60% to 70% of exports from Southeast Asia — primarily industrial inputs that go into manufacturing assembly. About 15% of the region's exports now head to the U.S., up about 4 percentage points from 2018. The U.S. has become increasingly vigilant about China's ability to bypass U.S. trade tariffs and other restrictions through third countries since Trump's first trade war in 2017. Thailand signaled its frustration over the lack of clarity for how much local content is needed in goods exported to the U.S. to avert transshipment rates, but noted it will likely be much higher than a traditional measure of 40%. "From what we've heard, the required percentage could be significantly higher, perhaps 60%, 70%, or even 80%,' Deputy Prime Minister Pichai Chunhavajira said July 14. "Emerging countries or new production bases are clearly at a disadvantage,' he said, as their manufacturing capabilities are still at an early stage and must rely on other countries for raw goods. Vietnam, Thailand and Malaysia have all taken steps this year to address Trump's concerns, increasing scrutiny of trade that passes through their ports including new rule-of-origin policies that centralize processing and imposing harsh penalties on transshippers. Developing nations may still struggle to enforce Trump's rules or comply with the rules if it means going up against China, their largest trading partner and geopolitical partner. "The reality is it's not enforceable at all,' said Dan Wang, China director at Eurasia Group. "Chinese companies have all kinds of ways to get around it and those other countries have no incentive to enforce those measures, or capacity to collect the data and determine local content.'

EU's Von der Leyen to meet Trump in bid to clinch trade deal
EU's Von der Leyen to meet Trump in bid to clinch trade deal

Japan Times

time14 hours ago

  • Japan Times

EU's Von der Leyen to meet Trump in bid to clinch trade deal

European Commission President Ursula von der Leyen said she will travel to Scotland this weekend to meet with U.S. President Donald Trump, as the two sides aim to conclude a trade deal ahead of an Aug. 1 deadline when 30% tariffs on the bloc's exports are otherwise due to kick in. After months of talks and shuttle diplomacy between Brussels and Washington, the two sides have been zeroing in on an agreement this past week that would see the EU face 15% tariffs on most of its trade. Limited exemptions are expected for aviation, some medical devices and generic medicines, several spirits, and a specific set of manufacturing equipment that the U.S. needs. Steel and aluminum imports would likely benefit from a quota under the arrangements under discussion but above that threshold they would face a higher tariff of 50%.

Why Is Taiwan Supporting an Illegal Israeli Settlement in the Occupied West Bank?
Why Is Taiwan Supporting an Illegal Israeli Settlement in the Occupied West Bank?

The Diplomat

time19 hours ago

  • The Diplomat

Why Is Taiwan Supporting an Illegal Israeli Settlement in the Occupied West Bank?

Taiwan's decision to donate to a medical facility located in the illegal Israeli settlement of Sha'ar Binyamin in the occupied West Bank earlier this month sparked a firestorm of controversy. It marked the first time since late 2023 that a foreign state has made such a public display of providing direct financial support for a project inside an illegal Israeli settlement in the occupied West Bank. At first glance, Taiwan's aid may appear purely humanitarian. In March and May 2024, Taiwan's representative office in Israel donated NT$15.9 million (approximately US$500,000) to support medical patrols in Israeli cities and to provide basic humanitarian assistance – such as food, water, and shelter – through an NGO operating in Gaza. However, more recently, Taiwan became the first foreign government to provide funding for a medical center located within an illegal Israeli settlement in the occupied West Bank. A ceremonial event marking the donation took place in July 2025, attended by senior Israeli officials and Taiwan's representative in Israel who, by her very visit to an illegal settlement in the occupied West Bank, effectively recognized Israel's unlawful occupation. At a press conference on July 22, a spokesperson for Taiwan's Ministry of Foreign Affairs said that 'discussions about the donation were still ongoing and centered solely on humanitarian and medical cooperation.' The West Bank, where the settlement regional council of Binyamin is located, is an occupied territory under international law. The establishment and expansion of Israeli settlements in the Occupied Palestinian Territory (OPT) are illegal under the Fourth Geneva Convention, which among other provisions protects civilian populations in occupied territory. These settlements thus constitute a war crime. The illegality of Israeli settlements has been reiterated by the United Nations, the European Union, and numerous international NGOs, including Amnesty International and Human Rights Watch. Most notably, the International Court of Justice (ICJ), which in 2004 already found that Israeli settlements are contrary to the Fourth Geneva Convention, affirmed the illegality of Israel's occupation of the OPT in its July 2024 advisory opinion. The ICJ concluded that: [A]ll States are under an obligation not to recognize as legal the situation arising from the unlawful presence of Israel in the Occupied Palestinian Territory. They are also under an obligation not to render aid or assistance in maintaining the situation created by Israel's illegal presence in the Occupied Palestinian Territory. Support or aid to any infrastructure projects in the settlements, even under the guise of medical donations, contributes to the maintenance and entrenchment of unlawful Israeli occupation. Any support provided to Israeli settlements, including medical care, should also be seen in the context of Israel's decades-long systematic and institutionalized discrimination against Palestinians, including in access to healthcare, which has resulted in stark health inequalities between Palestinians and Israelis. Compounding this inequality are Israel's arbitrary restrictions on Palestinian freedom of movement, ability to access clinics and adequate healthcare. Just in recent months, Israeli authorities have repeatedly obstructed West Bank Palestinians' access to life-saving healthcare, at times with lethal consequences. When Taiwan chooses to fund projects that exclusively serve Israeli settlers – Palestinians are barred from living in Israeli settlements – it contributes to legitimizing and maintaining Israel's system of apartheid. This is not only a violation of international law, but also undermines Taiwan's own image as a democracy rooted in human rights and equality. The grim reality on the ground sharply contrasts with the statements of Taiwan's representative in Israel, Abby Ya-Ping Lee. At the event celebrating the medical center in the settlement, Lee said: 'We are pleased to expand this cooperation to the regional level, through initial work with a regional council to save lives and to ensure the right to health regardless of ethnicity, age, or gender.' The very settlement enterprise that this donation supports and empowers is rooted in national, racial and ethnic domination over Palestinians. Israeli authorities continue to systematically and deliberately destroy or damage the healthcare sector in Gaza and deny or obstruct the entry of essential medical provisions. Israel also adopts unlawful measures that result in the erosion of the Palestinian healthcare system in the occupied West Bank, including East Jerusalem. Taiwan must take a principled and rights-based approach – which would look like supporting Gaza's decimated healthcare system and Palestinian healthcare facilities facing severe challenges in the West Bank, rather than investing in infrastructure serving illegal settlements. Donations, even in the guise of humanitarian aid, to illegal Israeli settlements in the OPT only serve to make them sustainable, thus entrenching a violation of international law. Taiwan has long sought greater international recognition and has positioned itself as a defender of liberal values, democratic governance, and global solidarity. These aspirations should extend to its foreign aid strategy. If Taiwan is to be seen as a responsible and genuine global actor, it must ensure that its humanitarian assistance – especially in conflict zones – is neutral, impartial, transparent, and consistent with international legal norms. In conflict zones where aid is often politicized, humanitarian neutrality is not a luxury – it is a mandatory and an international obligation. Taiwan's well-intentioned support can have meaningful impact, but only if it is grounded in impartiality and a commitment to upholding international law. This is not just about diplomacy; it is about ensuring that Taiwan's actions abroad reflect the values it upholds at home and ensuring that it does not engage in actions that could risk Taiwan being complicit in Israel's violations of international law.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store