Honda to Shift Civic Hybrid Production from Mexico to Indiana to Avoid Trump’s Tariffs
Honda is set to manufacture its next-generation Civic hybrid in Indiana instead of Mexico, aiming to bypass tariffs imposed under President Donald Trump’s administration, according to a report on Monday.
Reuters journalist Maki Shiraki, citing three sources familiar with the decision, reported that Mexico was initially chosen due to rising production costs in Indiana and Canada. However, the company has since altered its plans in response to Trump’s policies aimed at protecting American jobs and workers.
The shift highlights how automakers are adjusting to Trump’s proposed 25% tariffs on goods from Mexico and Canada. While several companies have voiced concerns over the tariffs, Honda is the first major Japanese automaker to take direct action.
Originally, Honda planned to produce the next-generation Civic in Guanajuato, Mexico, starting in November 2027. However, the company now intends to begin production in Indiana in May 2028, with an estimated annual output of 210,000 vehicles. If demand exceeds Indiana’s production capacity, Honda may import vehicles from countries not affected by the tariffs.
When approached for comment, a Honda spokesperson declined to confirm any changes to the Civic production plan, stating the company continues to assess demand and global market conditions to determine optimal production strategies.
Honda sold approximately 1.4 million vehicles in the U.S. last year, including its Acura lineup.