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Honda Announces 30% Increase in U.S. Manufacturing Amid Tariff Pressures

Honda plans to expand U.S. production over the next two-to-three years, but Canadian officials deny any shift from Ontario operations.

The Honda logo is displayed, at the 46th Bangkok International Motor Show in Bangkok, Thailand, March 24, 2025. REUTERS/Chalinee Thirasupa/File Photo
Honda employees work along the vehicle assembly line before an event announcing plans for a Honda electric vehicle battery plant in Alliston, Ont., on April 25, 2024.
A drone view shows Honda vehicles parked at the company's automotive assembly plant in Alliston, Ontario, Canada, April 1, 2025. REUTERS/Carlos Osorio

Overview

  • Honda aims to increase U.S. manufacturing capacity by 30% within the next two-to-three years to mitigate the impact of a 25% tariff on imported vehicles imposed by the Trump administration.
  • The company plans to shift production of key models, including the CR-V, HR-V, and the next-generation Civic hybrid, from Mexico to U.S. facilities.
  • Ontario officials, including Premier Doug Ford, assert that Honda's Canadian operations, particularly the Alliston plant, remain at full capacity with no plans for production shifts.
  • Honda has declined to comment directly on reports of production adjustments, but Canadian representatives reaffirm the automaker's commitment to its operations in Canada.
  • The move reflects a broader reshoring trend across the auto industry as manufacturers like Nissan and General Motors adjust production strategies to navigate new tariff policies.