Mazda has temporarily suspended CX-50 exports to Canada due to the US-Canada trade tariff conflict, leading to inventory shortages for dealers.

Taiwan • Business • 04/19 15:35
Mazda has temporarily suspended CX-50 exports to Canada due to the US-Canada trade tariff conflict, leading to inventory shortages for dealers.

Mazda Motor Corporation announced on April 18, 2025, that due to the trade conflict between the United States and Canada, it will temporarily suspend exports of the CX-50 from its Alabama plant to Canada starting May 12. This decision is in response to the United States imposing tariffs on Canadian goods and Canada's retaliatory tariffs. Mazda emphasized that this suspension is indefinite, and future supply is uncertain. Canadian dealerships have only a small amount of inventory remaining, and once sold out, there will be no restocking, resulting in a gap in the local product lineup.

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Mazda has temporarily suspended CX-50 exports to Canada due to the US-Canada trade tariff conflict, leading to inventory shortages for dealers.

Mazda Motor Corporation announced on April 18, 2025, that due to the trade conflict between the United States and Canada, it will temporarily suspend exports of the CX-50 from its Alabama plant to Canada starting May 12. This decision is in response to the United States imposing tariffs on Canadian goods and Canada's retaliatory tariffs. Mazda emphasized that this suspension is indefinite, and future supply is uncertain. Canadian dealerships have only a small amount of inventory remaining, and once sold out, there will be no restocking, resulting in a gap in the local product lineup.

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Key Timeline and Background

On April 3, 2025, the U.S. government imposed a 25% tariff on imported cars and components, leading Canada to immediately impose retaliatory tariffs on U.S. automotive products. This trade conflict quickly affected the North American automotive supply chain, with Mazda becoming one of the first foreign car manufacturers affected.

On April 18, 2025, Mazda confirmed through a spokesperson that it would suspend exports of the CX-50 to Canada starting May 12. This model has been entirely produced at the Mazda and Toyota joint venture plant in Huntsville, Alabama, since 2023, with sales in Canada reaching 10,759 units in 2024, accounting for about 15% of Mazda's total sales in the country.

Official Statement and Position

Sandra Lemaitre, spokesperson for Mazda Canada, stated: "Currently, dealers nationwide still have a small inventory of CX-50s and vehicles in transit, which will not be affected by the new tariffs and will be sold at the original price. However, once this stock is sold out, Mazda will not restock the CX-50 in the Canadian market, and it is uncertain whether supply will resume in the future."

She further noted: "We hope the trade situation can be resolved quickly. Mazda has always believed in the importance of maintaining fair trade and economic stability in global and North American markets."

Mazda emphasized that this is an "indefinite suspension" and not a permanent withdrawal from the Canadian market, but the move has already had a substantial impact on the brand's product line in the region.

Why is the CX-50 the First Model Affected?

The CX-50 is a mid-size crossover SUV positioned between the CX-5 and CX-70. Since its launch, it has quickly gained market favor with its modern design, excellent handling, and hybrid version. The model has been entirely produced at the Huntsville, Alabama plant since 2023, which is also the production base for the Toyota Corolla Cross.

Because the CX-50 relies entirely on the U.S. production line, it was the first to be affected when the U.S.-Canada tariff conflict erupted. Meanwhile, other Mazda models like the CX-5, CX-70, and CX-90 are primarily produced in Japan and are not affected by the U.S.-Canada tariffs.

Current Dealer Situation and Market Supply

Currently, Canadian Mazda dealers still hold a small inventory of CX-50s and vehicles in transit. These vehicles, having completed customs and transportation procedures, will not be affected by the new tariffs and will be sold at the original price. However, Mazda has clearly stated that once these vehicles are sold out, no more will be restocked.

Dealers have started adjusting their sales strategies, shifting focus to other models not affected by the tariffs. Particularly, the Japan-made CX-5, CX-70, and the three-row CX-90 have become the main options to fill the market gap left by the CX-50. Notably, the CX-90, not being U.S.-made, might actually benefit from this trade turmoil.

Market Reaction and Uncertain Future Supply

Mazda has not made a clear commitment on whether it will resume CX-50 supply in the future. If U.S.-Canada trade relations remain tense, Mazda may have two options: either increase the CX-50's price to reflect the added tariff costs or withdraw the model from the Canadian market long-term.

For Canadian consumers interested in purchasing a CX-50, this period might be the last opportunity to buy. As inventory gradually depletes, market supply will further tighten.

References

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The Mazda CX-50 has been discontinued in Canada. Will this affect the supply in other countries?

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The supply of the Mazda CX-50 to Canada has been suspended. Could this impact the sales of other models?

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Mazda has suspended the supply of the CX-50 to Canada. What are the long-term impacts on the local market and dealers?