Mazda Redirects Canadian Production to U.S. Amid Tariff Challenges
Mazda is set to redirect SUVs originally intended for the Canadian market to U.S. buyers starting this month, boosting domestic production of the CX-50 by 10%. This decision follows the automaker’s announcement in April to pause production in Canada due to automotive tariffs imposed by the Trump administration.
The Huntsville plant, which Mazda operates alongside Toyota, has an annual production capacity of 150,000 vehicles, with approximately 10% allocated for Canada. A spokesperson for Mazda’s Canadian division confirmed that operations at the Huntsville facility will remain stable despite the adjustments.
In April, Mazda reported its second-highest sales for the CX-50, selling 7,753 vehicles. In 2024, total sales reached 81,441, nearly double the previous year, highlighting the model’s growing popularity.
The automotive landscape took a significant turn after the Trump administration instituted a 25% tariff on imported vehicles in April. A similar 25% levy on imported auto parts followed in May. Although the administration later exempted certain auto parts from tariffs under the U.S.-Mexico-Canada Agreement, Canada retaliated with its own tariffs, complicating the automotive trade between the nations.
With approximately 80% of its U.S. sales derived from imports, Mazda is navigating a challenging environment but remains focused on maintaining stability in production and sales. The shift in vehicle allocation heralds a strategic response to market demands in light of ongoing trade tensions.
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