Nissan Eyes U.S. Production Shift Amid Tariff Pressures

Japan’s Nissan is evaluating relocating production of models like the Sentra, Versa, and Kicks from Mexico to U.S. plants in Mississippi (Canton) and Tennessee (Smyrna) to avoid 25% tariffs, as announced in April 2025. CEO Makoto Uchida noted potential profit hits of up to $3 billion (JPY 450 billion), prompting cost-cutting and capacity boosts at underutilized U.S. sites. The Sentra, Nissan’s second-best-selling U.S. model, is central to this, with production potentially shifting to Canton, which operates at 51% capacity and could be retooled quickly.

Nissan aims to “max out” its Smyrna plant, the largest in the U.S. with a 640,000-vehicle capacity, by adding shifts and possibly hybrid models or powertrain components. This includes transferring Rogue SUV production from Japan to Tennessee to hedge against tariffs on Japanese imports. The company has already paused new U.S. orders for Mexican-built Infiniti QX50 and QX55 SUVs and halted production of three models for Canada due to cross-border tariff disruptions.

This reshoring could create or preserve thousands of jobs at U.S. facilities, where Nissan employs over 10,000 workers, while boosting local economies in Mississippi and Tennessee. However, higher U.S. labor costs may lead to price increases for affordable models like the Sentra, starting at $21,000. No final decisions have been announced as of August 2025, with Nissan maintaining investments in Mexico amid ongoing evaluations.