Distress is spreading in Japan’s auto sector, putting into question Tokyo’s approach to trade negotiations with the United States.

Nissan unveiled sweeping new cost cuts on Tuesday, saying it would eliminate 11,000 more jobs and slim down production, capping a tumultuous year that has left the Japanese automaker fighting to turn itself around.

Two major Japanese automakers have warned that earnings will be hit hard by U.S. tariffs, underlining the risk of an industrywide downturn that could stunt Japan’s economic recovery.

Japanese automaker Nissan said it will shutter 7 plants and cut thousands of additional jobs in a second round of job cuts after millions of dollars in profit losses last year.

Nissan Motor unveiled sweeping new cost cuts, saying it would eliminate 11,000 more jobs and close 7 plants, capping a tumultuous year that has left the Japanese automaker fighting to turn itself around.

Nissan (NSANF) has battled shrinking sales and profits as it struggles to attract consumers. In November last year, Nissan warned that it will cut 9,000 jobs globally after its operating profit dropped by roughly 90% due to weak sales in the U.