Automaker Mazda has announced it will suspend production of one of its SUV models due to tariffs recently imposed by U.S. President Donald Trump on automobiles, which he claims pose a threat to the economic stability of the entire industry. Here’s what will happen with the affected vehicles.
Which SUV Will Mazda Stop Producing?
The vehicle in question is the CX-50 SUV, manufactured at the Huntsville, Alabama plants. Production will be paused starting May 12.
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What Will Happen to the CX-50 SUV?
According to Mazda, the move is temporary and will only affect vehicles destined for the Canadian market. The CX-50 will continue to be produced and shipped to more than 50 other countries. The Japanese automaker also stated that it will continue engaging in government negotiations and closely monitor changes in tariff policies.
Trump Imposes Tariffs on Automobiles
On April 3, a 25% tariff on automobileimports—imposed by President Donald Trump—went into effect. Additionally, on May 3, the U.S. is expected to introduce new tariffs on auto parts as well. According to S&P Global Mobility, 16 million new vehicles were sold in the U.S. in 2024, nearly 50% of which were imported. Mexico is the largest exporter of cars to the U.S. with 2.5 million units, followed by Canada with 1.1 million, and then countries like South Korea, Japan, and Germany.
How Will Tariffs Affect Car Buyers?
The new tariffs will lead to higher manufacturing costs, resulting in reduced vehicle production and higher prices for consumers due to supply and demand shifts. Once tariffs on auto parts are enforced, the cost of producing vehicles will increase even further—even in U.S. factories—because all vehicles assembled domestically rely on imported components.
Temu and Shein Raise Prices Due to Tariffs
Trump’s tariffs have also impacted other sectors of the economy. Several companies have begun increasing product prices as a result of these new duties, including Chinese retailers Temu and Shein. As of Friday, April 25, both companies adjusted their prices.
In an official statement, Shein said that recent changes in international trade regulations and tariffs have led to higher operating costs. To maintain product quality, the company decided to implement a price adjustment. Temu cited similar reasons and assured customers it would do everything possible to maintain on-time delivery of orders.
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What Are Tariffs?
Tariffs are taxes imposed on imported goods. They are designed to benefit domestically produced products by giving them a competitive price advantage over similar imported items. Tariffs also serve as a source of revenue for governments.
Why Is Donald Trump Imposing Tariffs?
President Donald Trump has stated that tariffs are a key component of his economic strategy. His goals include promoting U.S. manufacturing, protecting domestic jobs, increasing government revenue, and stimulating economic growth.
Trump seeks to revitalize and rebuild the American manufacturing sector, which has lost a significant number of jobs over the past 40 years—largely due to outsourcing to lower-wage countries such as Mexico and China. He also believes that the U.S. trade deficit is too large and that other countries are taking advantage of access to American consumers.
