Honda plans to move production of its hybrid Civic model from Japan to the United States in response to tariffs on imported cars imposed by U.S. President Donald Trump. Production of the five-door hybrid model began in February in Saitama Prefecture in central Japan. Production of the model will be moved to Honda's plant in Indiana around June or July, a Honda spokesman said Wednesday.
"This decision was made based on external factors including Trump administration tariffs," they said.
While it's difficult to predict if, when and where Trump's tariffs will have an impact, Honda is one of the foreign brands with the highest exposure in the United States. A company executive said in November that the company imports about 160,000 vehicles from Mexico to the United States each year. The United States is also the largest market for Honda and other Japanese automakers such as Toyota Motor Corp and Nissan Motor Co.
Mexican Economy Minister Marcelo Ebrard posted on X earlier this week that Honda executives in Mexico told the government that the company's production plans in the country have not changed. This follows reports that Honda was considering moving production from Mexico and Canada to the United States in response to auto tariffs.