Overview

• Honda will produce its next-generation Civic hybrid in Indiana starting May 2028, instead of Mexico, to avoid potential U.S. tariffs on imports from Mexico and Canada.
• The decision comes as President Trump plans to implement 25% tariffs on goods from neighboring countries to address border security and trade concerns.
• Honda had initially planned to manufacture the Civic hybrid in Guanajuato, Mexico, citing lower production costs, but rising costs and tariff threats prompted the shift.
• The Indiana facility, which already produces several Honda models, is expected to produce 210,000 Civic hybrids annually, with the company exploring imports from non-tariffed countries if demand exceeds supply.
• This move marks the first significant adjustment by a Japanese automaker in response to the proposed tariffs, with other manufacturers like Stellantis and Volkswagen also considering changes to their U.S. production strategies.