Automobile tariffs have become a “roadblock” and two Nissan (NSANY.US) US factories are suspending production of Canadian special models

The Zhitong Finance App learned that according to reports, Nissan Motor (NSANY.US) has suspended production of three models of cars sold to Canada at its Tennessee and Mississippi plants due to the mutual imposition of tariffs on imported cars between the US and Canada.

The report said that this shutdown began in May and affected the Pathfinder and Murano SUVs manufactured in Tennessee, as well as Frontier pickups manufactured in Mississippi.

The Trump administration imposed 25% tariffs on imported cars in April, prompting Canada to implement retaliatory tariffs. Mazda Motor Corp. said in May that its Alabama plant stopped producing cars for sale in Canada while increasing car production for the US market.

Although Canada is a relatively small market for Nissan, suspending exports will highlight the difficulties faced by global automakers due to tariffs. Tariffs have also exacerbated Nissan's crisis, which has been hit hard by declining sales and aging models.

The company reported a net loss of 4.5 billion US dollars for the fiscal year ending March, and declined to disclose its forecast for the current fiscal year as the company also faced approximately 700 billion yen (4.8 billion US dollars) of maturing debt.

All three credit rating companies have downgraded Nissan's debt rating to a “junk grade.” The media reported last month that the automaker had asked some suppliers to allow it to defer payments in order to free up short-term funding.

Nissan does not have a factory in Canada. Nissan sold approximately 104,000 vehicles in Canada in the previous fiscal year, less than half of its sales in Mexico, and slightly more than 10% of its sales in the US. Overall, Canada accounted for only 3% of Nissan's global sales in the last fiscal year.

Nissan shares fell 3% in the Tokyo stock market on Wednesday, underperforming the Nikkei Index.