Honda Considers Ramping Up U.S. Production By 30% To Dodge New Tariffs

With the U.S. government slapping a hefty 25% tariff on imported vehicles, is reportedly considering a big move. The Japanese automaker is weighing plans to shift a chunk of its vehicle production from Mexico and Canada to the United States.

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According to a report from the Nikkei, Honda wants to ramp up its U.S. production capacity by as much as 30% over the next two to three years. The goal? To have up to 90% of the cars it sells in the U.S. made locally. It’s a strategic pivot aimed at dodging the financial sting of the new tariffs, which President Donald Trump introduced.

Interestingly, Honda was already a step ahead. Even before the tariff news broke, the company had decided to build its next-gen Civic hybrid in Indiana instead of Mexico—an early move that now looks pretty smart.

The U.S. is Honda’s biggest market, making up around 40% of its global sales. In 2024 alone, it sold roughly 1.4 million vehicles stateside. So, staying competitive means being agile—and possibly reshuffling its manufacturing game plan to keep costs in check and customers happy.

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For now, Honda hasn’t officially confirmed any changes, but the idea of moving more production to the U.S. is seen as a logical next step to stay ahead in an increasingly complicated trade landscape.

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