Gotrade News - Several foreign carmakers warned they may pull their cheapest models from the US market without a tariff deal. Nissan Motor moved in the opposite direction, flipping its annual outlook from a 60 billion yen loss to a 50 billion yen profit.
The Wall Street Journal reported on Sunday, April 27, that the warnings reached economic advisers in the Trump administration. The core message is that affordable vehicles are not viable in the US without lower North American tariffs.
--- - The average new car price in the US reached $51,456 in March 2026 according to Reuters data. - China's five best-selling EV models, including the BYD Seagull and Geely EX2, sell for less than $11,000 each. - Nissan raised its full-year operating profit outlook to 50 billion yen from a 60 billion yen loss. ---
The Geely EX2 is the top-selling vehicle of any kind in China at a starting price of $10,060. The Wuling Hongguang MiniEV starts at $6,560 with a 127-mile range and a 62 mph top speed.
The BYD Seagull, BYD Yuan UP, and BYD Qin Plus DM each sell for under $12,000 in China. The premium Seagull variant claims a 314-mile range with an optional lidar driver-assistance package.
Hypercompetition in China keeps more than 200 EV models priced below $25,000. The contrast with the average US new-car price means a typical American outlay buys roughly five Chinese EVs.
The WSJ noted that producers including Toyota and Honda flagged entry-level models as unviable without tariff relief. The discussion comes amid USMCA renewal talks that act as a precondition for operating economics.
The signal points to meaningful margin pressure on foreign producers serving US middle-class buyers. Higher tariffs risk pushing demand toward domestic brands or Chinese imports that are not yet available in US showrooms.
Against that backdrop, Nissan surprised the market with a positive revision to its annual outlook. Shares jumped as much as 6.5% to 373.7 yen before settling at 364.9 yen on Monday, April 28.
Nissan also raised annual revenue guidance to 12 trillion yen from a prior 11.9 trillion yen estimate. Net loss is now expected to narrow to 550 billion yen from a previous 650 billion yen projection.
Management cited a one-off benefit from changes to US emissions regulation as the main driver of the revision. Cost-efficiency initiatives and currency moves also helped support operating margin.
Nissan projects automotive net cash above 1 trillion yen by the end of fiscal 2026. Full results land on May 13, providing the validation point for the new outlook.
For retail investors, the tariff overhang and the Nissan turnaround are two sides of the global auto story. Tariffs mark a cost risk while Nissan shows that structural efficiency still has room to support margins.
Global carmakers including Toyota, Honda, and Tesla are accessible through the Gotrade app. Diversification across the sector should include tariff policy as a key macro variable.
