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Trade war

Nissan to expand US production to avoid North American tariffs

First move by a Japanese automaker to clear 75% content requirement

Nissan will start producing the engines for the Infiniti QX50 crossover SUV in its plant in Tennessee.   © Reuters

TOKYO -- Nissan Motor will start producing engines for a luxury crossover SUV in the U.S. to avoid tariffs under a reworked North American trade agreement that requires 75% of a car's parts to be locally sourced, Nikkei learned Saturday.

The Japanese automaker will start producing as early as 2020 the latest engines for the Infiniti QX50 at a Tennessee plant, with output to be shipped to Mexico for final assembly. Initial production is aimed at more than 20,000 units. The engines are currently exported from its Yokohama factory, which will continue production.

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