Honda is shifting production of the Civic from Mexico to the United States, in response to President Donald Trump's planned 25 percent tariffs on Mexican imports, sources told Reuters.
Starting in May 2028, the Japanese automaker will begin manufacturing the new Civic hybrid in Indiana to avoid potential tariffs, the sources said. The Civic, one of Honda's top-selling models, is expected to have an annual output of around 210,000 units.
The announcement comes just a day before Trump's 25 percent tariffs on Mexican and Canadian goods are set to take effect, part of the administration's efforts to curb drug trafficking and illegal immigration. Trump announced a 30-day pause on the tariffs, which were originally slated to go into effect last month, after Mexico and Canada agreed to deploy troops and personnel to secure their borders with the United States.
Mexico has long been a low-cost production hub for automakers, with Honda exporting around 80 percent of its Mexican output to the United States, Reuters reported.
Trump has pledged to boost domestic manufacturing, arguing that tariffs help protect American workers and counter foreign "unfair trade practices." Since returning to the Oval Office, Trump has increased tariffs on Chinese goods, levied 25 percent tariffs on all aluminum and steel imports, and announced reciprocal tariffs on U.S. competitors and allies alike.