Trump auto tariffs benefit Nissan plant in Tennessee
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A worker uses a computer on the assembly line at the Nissan Motor Co. manufacturing facility in Smyrna in 2021. Photo: Luke Sharrett/Bloomberg via Getty Images
President Trump's tariffs on automobiles are benefiting Tennessee as Nissan announced it would reverse an earlier decision to cut back production at its plant in Smyrna.
Why it matters: A primary goal of Trump's aggressive tariff strategy is to boost U.S. manufacturing.
State of play: The Smyrna plant is home to about 5,700 jobs and produces the Nissan Rogue. In January, the Japanese automaker offered employee buyouts and announced it would reduce its Rogue production from two shifts to one.
- Last week, Nissan said it would rev back up to two shifts in response to Trump's 25% tariff on auto imports.
- Nissan followed up that announcement by deciding to scale back production of the Rogue at a plant in Japan, according to a Tuesday report by Reuters.
What they're saying: "Currently, more than half of our U.S. sales volume is sourced from our plants in Tennessee and Mississippi," the company said in a statement last week.
- "We will maintain two shifts of production of Nissan Rogue at our Smyrna, Tennessee plant, keeping more localized volume in the U.S. that is free of the new auto tariffs."
Yes, but: The last few weeks have been chaotic when it comes to Trump's strategy as he imposes stiff tariffs and then follows up with temporary pauses.
- Trump said as recently as Monday he is pondering a pause on auto tariffs.
- "I'm looking at something to help some of the car companies with it," Trump said Monday, according to PBS, adding automakers need time to shift production to the U.S. "And they need a little bit of time because they're going to make them here, but they need a little bit of time. So I'm talking about things like that."
- In addition to Nissan, Honda is considering moving production from Canada to the U.S., according to the Toronto Star.
The other side: While Trump's tariffs may benefit Tennessee's auto industry, they've have had a negative effect in other areas.
- LG Chem expressed concerns about tariffs ratcheting up costs of its planned $3.2 billion electric battery cathode materials plant north of Nashville. Tennessee whiskey distillers are also worried about reciprocal tariffs taking a major bite out of their business.
Zoom out: Trump's spending cuts elsewhere have hit Nashville institutions hard.
- Vanderbilt University Medical Center is preparing to slash its budget by $250 million.
- Metro has seen an array of federal funding cuts to programs including public health initiatives. Nonprofit groups like Second Harvest Food Bank are also bracing for federal grant reductions.
Go deeper: Read about the winners and losers of Trump's auto tariffs.