The CEO of Nissan has said he may be forced to move production out of Mexico if Donald Trump imposes tariffs on exports.
The head of the Japanese automaker made the comments during a press conference on Friday.
“From Mexico to the U.S., we are exporting a significant number of cars this fiscal year,” Uchida said, according to Reuters.
”320,000 units are exported from Mexico to the U.S., and if the high tariffs are imposed, we need to be ready for this,” he continued.
”Maybe we can transfer the production of these models elsewhere if this were the decision, we will think how we can make it a reality while monitoring the situation.”
“We are exporting a large volume to U.S., so if there’s a high tariff, this would have huge implications on our business, so we need to monitor this carefully.”
While it is not clear whether Uchida would return production to the U.S., a promise to ened the outsourcing of American jobs to Mexico has always been an integral part of Trump’s political appeal..
Trump’s proposed 25 percent tariffs on Mexico are currently on hold until March after discussions with Mexican President Claudia Sheinbaum.
“It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States,” Trump said on Truth Social last month.
”These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country.”
BREAKING: Mexican President Agrees to Work With Trump to Close Border One Day After Tariffs Imposed
If Trump eventually follows through, the move could have serious implications for the Mexican economy.
Just last year, Mexican plants manufactured 670,000 Nissan vehicles, over 450,000 of which were exported.
Nissan is the ninth largest car company in the world, selling between three and four million units every year.
The company has several manufacturing facilities across the United States, the largest being in Tennessee and Mississipi.
Over recent weeks, there had been active negotiations about the possibility of Nissan merging with fellow Japanese automobile giant Honda.
However, those talks have since fallen through and are not expected to resume.
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