Honda Shifts Civic Hybrid Production to Indiana to Avoid U.S. Tariffs

The automaker adjusts plans to sidestep President Trump's proposed 25% tariffs on imports from Mexico and Canada.

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.