Nissan Sentra Eyes U.S. Production Amid Trump Tariffs: What It Means for America’s Most Affordable Car

In a pivotal move that could reshape the landscape of budget vehicles in America, Nissan is reportedly considering shifting production of its popular Sentra sedan to the U.S. — a strategic response to newly proposed tariffs by President Donald Trump targeting foreign-built vehicles. This potential shift marks a major victory for Trump’s protectionist economic policies but could signal higher costs for consumers already burdened by rising vehicle prices.

Nissan Sentra Poised to Replace Versa as America’s Cheapest New Car

With the discontinuation of the Nissan Versa — the nation’s most affordable new car at $17,190 — after the 2025 model year, the $21,590 Sentra was set to take its place as the most accessible vehicle for cost-conscious Americans. However, this smooth transition is now under threat as Trump’s new tariffs take aim at vehicles assembled outside the U.S., including the Sentra, which is currently built in Aguascalientes, Mexico.

Trump Tariffs Disrupt Budget Car Segment

Trump’s proposed tariffs are designed to protect American manufacturing by penalizing automakers that rely heavily on overseas production. But experts warn that such tariffs will have the opposite effect on American consumers — especially those shopping in the budget car segment. Even a slight uptick in costs due to import taxes on vehicles or their components could price entry-level sedans like the Sentra out of reach for working-class buyers already grappling with inflation and high interest rates.

Michael DeLong, a research and advocacy associate with the Consumer Federation of America, warned, “The Trump administration’s tariffs are going to increase costs of various steel and other metals and drive up auto costs. It would make auto costs increase for everyone.”

A Shift to Mississippi? Nissan Weighs Domestic Production

To mitigate the financial impact of these tariffs and stay competitive in the budget segment, Nissan is exploring moving final assembly of the Sentra to its underutilized manufacturing facility in Canton, Mississippi. Currently, the plant builds the Altima sedan and Frontier pickup truck, and has the capacity to take on additional production lines.

While Nissan has not officially confirmed the move, industry insiders and suppliers suggest that internal discussions are well underway. “We regularly evaluate our industrial strategy with supplier partners based on market requirements,” a Nissan spokesperson told DailyMail.com, though adding, “We’ve made no changes to our plan.”

Even if the shift is made, it’s unlikely to completely shield the Sentra from tariff exposure. Many of the car’s core components, including critical parts of its powertrain, are still sourced from Mexico. Additionally, Trump’s tariffs on aluminum, steel, and automotive parts will continue to pose challenges for Nissan’s U.S. operations.

A Tough Road Ahead for Nissan

This shakeup comes at a turbulent time for Nissan, a brand long known for offering affordable cars in the U.S. market. Despite having six models under the $30,000 mark, the company has struggled to turn a profit. Gearheads and industry critics have noted that the brand’s aging technology — particularly in its powertrains — has eroded consumer enthusiasm.

At the end of 2024, Nissan reported a sales loss of $93.6 million, triggering a downgrade to “junk” credit status by Moody’s. Merger talks with Honda fell through earlier this year, and while Toyota has reportedly shown interest in investing in Nissan, no formal announcements have been made.

Ivan Espinosa, a veteran of the company, took over as CEO in April 2025, inheriting a company in survival mode. In private conversations with reporters last fall, Nissan executives suggested the company had only 12 to 14 months of liquidity left.

The Bigger Picture: Budget Cars Are Vanishing from U.S. Roads

The demise of the Versa and possible price hikes on the Sentra point to a broader trend: the vanishing of affordable vehicles in the U.S. The average price of a new vehicle now exceeds $48,000, with monthly car payments climbing past $700. Once Sentra moves past the $22,000 range due to tariffs or production changes, there may no longer be any new vehicles in the sub-$20,000 category in America.

Meanwhile, global competition — especially from Chinese automakers — is heating up. China’s BYD Seagull, for instance, offers a base model electric vehicle for just $7,800, further highlighting the cost inefficiency of U.S. production under current economic policies.

A Policy Win with Complex Trade-Offs

President Trump’s tariffs may score political points by encouraging domestic manufacturing, but they also risk alienating a significant portion of the American car-buying public. For Nissan, relocating Sentra production to the U.S. may be a necessary strategic play — but one that won’t come without costs. The ultimate test will be whether Nissan can maintain affordability while weathering higher domestic production expenses. If not, America’s cheapest car could become another victim of protectionist policy — a paradoxical outcome in a market already desperate for affordable transportation.