First major auto manufacturer pulls plug on US production due to tariffs
Following President Donald Trump's introduction of the 'Liberation Day' tariffs, the first major car manufacturer has announced plans to halt production in the United States.
The president, who initiated blanket tariffs of 10% on all countries except Canada, Mexico, and China, 25% tariffs on imports from Mexico and Canada, as well as on all automobiles, and a 125% tariff on China, has not backed down from his stance and has
even issued threats
to other countries.
The tariffs have also resulted in
clashes with
Federal Reserve Chair
Jerome Powell
and
threats of lawsuits
concerning the global trade war imposed by Trump.
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While the president has stated that his tariffs will bring manufacturing back to the United States, one automaker seems to be leaving instead.
Mazda has said it will shut down production at a U.S. plant due to tariffs.
Mazda has confirmed it will halt production of CX-50 vehicles bound for Canada due to the tariffs in the U.S. and the corresponding retaliatory measures enacted in Canada.
The company confirmed that production at its Huntsville, Alabama, plant will be suspended beginning on May 12.
The plant produces the CX-50 vehicles for the North American market. The duration of the suspension has yet to be determined.
This is expected to lead to a limited supply of CX-50 vehicles in Canada, though the company will still sell the remaining stock.
Maza Canada spokesperson Sandra Lemaitre stated that dealers are not removing existing vehicle stock.
'Mazda Canada currently has a limited supply of CX-50 inventory and in-transit units that our retailers will continue to sell,' said Lemaitre.
'We are working on assessing what impact the U.S. tariffs and Canadian retaliatory tariffs will have on our business, on Mazda U.S. business, and global production, with the aim of taking a principled approach on how to mitigate any risks for our customers, our retailers, and Mazda.'
The company emphasized that 'Maintaining fair trade and economic stability globally, and within the North American market, is extremely important, and we hope that the trade situation will be resolved quickly.'
If tariff policies remain unchanged and the plant stays closed for an extended period, the price of the CX-50 in Canada could rise further.
Prices could be increased to offset additional costs, or they might remove the model from the market entirely.
Currently, CX-50s
start at $30,500
and can go higher depending on added features. In Canadian currency, the cost is equivalent to $42,197.
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