Overview
- Nissan, Hyundai, and Toyota have told the White House they may pull their lowest‑priced models if the North American trade pact is not credibly renewed or tariffs are not eased.
- A new 25% levy on non‑U.S. parts now hits vehicles that once qualified for duty‑free entry under USMCA, which erodes thin margins on budget cars.
- Only 7% of new cars sold cost under $30,000, and eight of the ten cheapest models come from foreign brands, so any exit would sharply cut affordable choices for U.S. buyers.
- Automakers are delaying big plant projects and retooling plans, with Toyota saying it will not commit billions for new U.S. capacity without a clear trade settlement.
- The White House is pressing companies to reshore production, while Canada and Mexico seek auto tariff relief as a condition for renewing the trade deal.