President Donald Trump’s sweeping tariffs against Canada and Mexico began last night, adding 25 percent to the vast majority of goods crossing the border. Unsurprisingly, the actions will have an outsized impact on American automakers, but they will also hit global companies with an established manufacturing presence in North America, including Honda. Recent reports cite sources who say the Japanese automaker is considering moving production of the next-generation Civic Hybrid to the U.S. to avoid some of the tariffs’ impact.
Honda initially planned to build the Civic at its plant in Guanajuato, Mexico, but Reuters’ sources said the automaker now plans to build the car in Indiana starting in 2028. Mexico was an attractive location before due to lower production costs. The Indiana plant is projected to reach an annual production output of 210,000 vehicles, but Honda could lean on imports from countries not covered by tariffs if more capacity is needed.
The automaker hasn’t confirmed the reports, telling Reuters that it would continue to monitor demand and consider “optimal production and allocation globally.” Approximately 80 percent of the vehicles Honda builds in Mexico are destined for sale in the United States, so it’s possible the company moves more production here as time goes on. Honda may also see impacts on vehicles flowing the other way, as it exports tens of thousands of cars to Canada and Mexico annually.
[Images: Honda]
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