Mitsubishi Is Stopping Shipments To Dealers In Response To Tariffs

Way back at midnight days of last week, automakers like Infiniti, Jaguar Land Rover, and Audi began holding cars at port somewhat than shipping them on to dealers. Those automakers held out attributable to tariff fears, given all of the uncertainty and course-reversing that is happened within the intervening seven days. It seems, though, that other automakers are holding out on similar fears: Mitsubishi, too, is holding cars at port until the tariffs might be clarified. 

Mitsubishi revealed the move Friday, in a note to Automotive News, however the automaker didn’t confirm when — or whether — deliveries to dealers would resume. The corporate claimed that it has a 100-day supply of tariff-free cars able to go, most of that are already in dealer hands, but buyers have been panic-buying cars before the additional fees kick in — that provide may not last so long as Mitsubishi’s math estimates, if it’s based on old data. 

Mitsubishi’s cars are in-built Japan, which faced a 24% tariff from the Trump admin before the “pause” on Friday. Cars, though, are still faced with 25% taxes across the board — something Mitsubishi is not yet working into its pricing structure, but can have to account for with future sales. With the corporate’s recent struggles within the American market, and the opportunity of it being ousted from a future Nissan merger looming over its head, this extra tax the very last thing the inexpensive automaker needs. 

Mitsubishi has targeted the price-conscious end of the market with high-volume units, but that entire play could disappear under the present Trump tariffs — let alone if further taxes are enacted on imports from Japan. If the corporate is lucky, it’ll work out some kind of deal that permits this held-back inventory to bypass those tariffs, but that is removed from a guarantee at this point. In a worst-case scenario, we could simply see Mitsubishi exit the U.S. entirely — there may simply be no more market here for the brand that after gave us the Evo.