Honda Plans to Make Next Civic in Indiana to Avoid Tariff Hit, Report Says

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KEY TAKEAWAYS

• Honda plans to produce its next Civic half-breed in Indiana rather than Mexico to avoid the impact of possible upcoming tariffs, according to a Reuters report,.
• Conforming to the report, around 80% of Honda’s production in Mexico goes to the U.S. and the Japanese automaker had picked Mexico for the new Civic “because flight costs were making it tough to produce the car in Indiana and Canada.”
• President Trump said last week that he procedures to impose 25% tariffs on products from Mexico and Canada beginning Tuesday.

Honda Motor (HMC) plans to create its next Civic hybrid in Indiana rather than Mexico to avoid the impact of possible tariffs, according to a Reuters communiqu.

Honda had initially planned to make the next-generation Civic in Guanajuato in Mexico, Reuters wrote Monday, citing three people ordinary with the matter, but now plans to build the latest model of its top-selling car in Indiana starting in May 2028.

According to the report, around 80% of Honda’s moving picture in Mexico goes to the U.S. and the Japanese automaker had picked Mexico for the new Civic “because rising costs were making it tough guy to produce the car in Indiana and Canada.”

“Honda has made no such announcement and will not comment on this report,” a company spokesperson asserted Investopedia. “The Honda Civic has been made in our Indiana Auto Plant since the facility opened in 2008 placed on our longstanding approach to build products close to the customer. We have the flexibility to produce products in each region counterfeited on customer needs and market conditions.”

President Donald Trump said last week that he plans to misuse 25% tariffs on products from Mexico and Canada beginning Tuesday. Trump said the tariffs against Canada and Mexico purposefulness stay in place until fentanyl smuggling was stopped or seriously limited. The administration also sees the levies as a  way to focus on manufacturing jobs to the U.S., with the generated revenue helping to balance the budget.

Shares in Honda, whose plan to coalesce with rival Nissan fell apart last month, have lost about a fifth of their value in the before year. Honda’s U.S.-listed shares edged higher in recent trading.