Nissan CEO Makoto Uchida stated that President Trump’s proposed tariffs on Mexico could push the automaker to relocate production. With 320,000 vehicles exported to the U.S. from Mexico last year, Uchida emphasized that if high tariffs are imposed, Nissan may shift production elsewhere to mitigate costs.

The potential move would be a significant hit to Mexico’s auto industry, where Nissan ranks as the second-largest producer. Meanwhile, Trump has temporarily suspended the 25% tariffs until at least March after securing Mexico’s agreement to deploy 10,000 troops to curb illegal migration and fentanyl trafficking.