President Donald Trump’s tariff threats against Mexico have led Honda to reportedly make a major production change.
The automaker will reportedly produce its Civic hybrid in Indiana, instead of Mexico, in order to avoid Trump’s potential 25% tariffs on goods from Mexico and Canada.
“Japan’s second-largest automaker had initially planned to manufacture the next-generation Civic in Guanajuato, Mexico,” Reuters reported, citing “three people familiar with the matter.”
“Production was slated to start from November 2027, according to one of the people,” the outlet continued. “Mexico was chosen because rising costs were making it tough to produce the car in Indiana and Canada, one of them said.”
Breaking news about President Trump’s tariffs, which are set to start tomorrow.
“According to Reuters, Honda will move production of the next Civic from Mexico to Indiana to avoid the increased cost.” pic.twitter.com/q04BZzvIWL
— Bobby LaValley (@Bobby_LaVallley) March 3, 2025
The new production will begin in May 2028 and an annual production of approximately 210,000 vehicles is expected, likely from Greensburg, where the company’s only Indiana manufacturing facility is located.
Honda would reportedly “import from nations not hit by tariffs if production in Indiana falls short of demand,” one of the sources told Reuters.
While the automaker did not confirm plans revealed by the anonymous sources, a spokesperson told the outlet that the company would continue to consider “optimal production and allocation globally”.
Exclusive: Honda to produce next Civic in Indiana, not Mexico, due to US tariffs, sources say https://t.co/nmF8hXSMXB
— Rapid Response 47 (@RapidResponse47) March 3, 2025
Honda reportedly sold 1.4 million cars and trucks in the U.S. last year and the Civic is the company’s second-best seller, with sales of more than 240,000 vehicles, both gasoline and gasoline-electric hybrid models, The company’s data showed that Civic sales rose 21% year-on-year last year.
Trump’s 25% tariff on all imports will go into effect by midnight Tuesday unless Mexico’s President Claudia Sheinbaum follows through on efforts to reduce the illegal flow of drugs and migrants across the shared border.
On social media, many saw the reported move by Honda as another sign of winning under President Trump.
Honda deciding to produce the Civic hybrid in Indiana rather than Mexico is case #500 as to why Trump’s tariffs work.
— Daniel Baldwin (@baldwin_daniel_) March 3, 2025
The art of The Deal. Winning, winning, winning. 🇺🇸🇺🇸🇺🇸🇺🇸
— Holger Meinicke (@HolgerMeinicke) March 3, 2025
Trump’s tariffs doing exactly what they’re supposed to. bringing jobs back to American soil.
— Make Men Great Again (@OneXOneY) March 3, 2025
Winning! pic.twitter.com/b7uALstZeB
— Whale Psychiatrist ™️ (@k_ovfefe2) March 3, 2025
