Mazda Motor is shifting production capacity originally intended for Canada to the US market, effectively increasing its American supply by 10% as automakers scramble to adjust to President Donald Trump’s new import tariffs.
The Japanese automaker will suspend manufacturing of its CX-50 SUV for the Canadian market at its Alabama plant starting May 12, a representative of Mazda’s Canadian subsidiary confirmed. The facility, operated jointly with Toyota Motor, has an annual production capacity of 150,000 vehicles.
The move comes in direct response to the Trump administration’s 25% tariff on imported automobiles implemented April 3, followed by similar levies on imported auto parts that took effect May 3. Mazda finds itself particularly vulnerable to these trade measures, as it imports approximately 80% of vehicles sold in US dealerships.
While the Trump administration announced on April 29 that auto parts previously imported duty-free under the US-Mexico-Canada Agreement would remain exempt from new tariffs temporarily, the prolonged impact of these trade barriers may force import-dependent manufacturers to increase domestic production.
Japanese automakers collectively face tariff costs that could reach up to ¥3.2 trillion ($21 billion), with analysts identifying Mazda as one of the companies most severely affected by the new trade policy.
The Alabama plant operations “remain unaffected” by the production shift, according to company representatives, as the redirected capacity will maintain current manufacturing levels while serving a different market.
