First major carmaker to halt production in the USA: tariff impact hits assembly lines on May 12

The impact of Donald Trump’s ‘Liberation Day’ tariff policies are beginning to hit with car manufacturer Mazda confirming that it will halt production of CX-50s vehicles bound for Canada, a move prompted by America’s tariffs and corresponding Canadian countermeasures.

Mazda takes measures in the fact of tariffs

Mazda says the pause will begin on May 12 at its Huntsville, Alabama plant, which builds the CX-50 car for North American markets. The company did not say how long the suspension will last. According to Mazda Canada spokesperson Sandra Lemaitre, dealers across the country will continue selling what remaining stock they have on hand until all units are gone.

Mazda stressed that: “MTM (Mazda Toyota Manufacturing) will continue to build the Mazda CX-50 for the North American market, with no changes to overall production volume.

As Mazda’s only vehicle assembly plant in the United States, we intend to utilize MTM to the fullest to support the growth of our business.

We will continue to monitor the situation, including government negotiations, market trends, and policy developments, and will consider flexible and appropriate responses accordingly.

Production of the CX-50 for the Canadian market will be temporarily suspended starting May 12 (U.S. time). However, by increasing production for the U.S. market, MTM operations remain unaffected".

Uncertain future for auto manufacture

If there is no change in the U.S. government tariff policy, Mazda could raise the price of the CX-50 in Canada to offset added costs, or potentially withdraw the model from the market entirely. In the meantime, Canadian buyers interested in a CX-50 will have to move swiftly with current inventory at dealers is all that will be available for the foreseeable future.

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