Isuzu to Build Car Plant in South Carolina as Trump Tariffs Loom

(Bloomberg) -- Isuzu Motors Ltd. is investing ¥43 billion ($280 million) to build a new manufacturing plant in South Carolina, a timely move as Japanese carmakers brace for steep tariffs on components imported to the US from Mexico and Canada.

Isuzu plans to have the site up and running by 2027, and aims to employ more than 700 workers there by 2028 and produce 50,000 vehicles annually by 2030, the company said Wednesday.

“We plan to use a flexible manufacturing methodology that can accommodate demand for gasoline cars, while keeping in mind the transition toward electric passenger cars in the long term,” it said in a statement.

Japan’s Prime Minister Shigeru Ishiba told US President Donald Trump last week that Isuzu plans to build a plant and create jobs in the US. Ishiba also said Toyota Motor Corp. plans to announce more US investments, as he looked to curry Trump’s favor on key economic and defense issues during his trip to Washington this month.

Trump’s potential tariffs on goods from Mexico and Canada spell trouble for carmakers reliant on manufacturing plants in both countries, where they build or assemble countless cars for the US market.

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