Saturday, 19 April 2025

Vehicle Manufacturer Looks To Increase U.S. Production In Response To Tariffs, Report Claims

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Honda is reportedly making plans to shift production of several models from Canada and Mexico to the United States.

According to reports, the Japanese automaker set a goal to ensure 90% of models sold in the United States are manufactured domestically.

From the New York Post:

Honda plans to boost its production in the US by up to 30% over the next two-to-three years, the outlet reported.

The move would be a direct response to President Donald Trump’s recently imposed 25% tariff on imported vehicles and auto parts — a policy that has upended production plans across the auto industry.

Honda rival Nissan will cut Japanese production of its top-selling US model, the Rogue SUV, over the next few months, sources told Reuters on Tuesday.

The third-largest Japanese automaker said in a statement it was reviewing its production and supply chain operations to identify optimal solutions for efficiency and sustainability. It said it was committed to adapting to market changes while prioritizing workforce and production capabilities.

“Our approach will be thoughtful and deliberate as we navigate both immediate and long-term effects,” it said.

The announcement came a day after Trump said he was considering modifying the auto levy because automakers “need a little bit of time.”

Honda, the second-largest Japanese automaker by sales, has long depended on the US as its most important market.

Per Reuters:

The Nikkei newspaper earlier said Honda was considering switching some car production from Mexico and Canada to the United States, aiming for 90% of cars sold in the country to be made there, in response to new U.S. auto tariffs.

Japan’s second-biggest automaker by sales plans to increase U.S. vehicle production by as much as 30% over two to three years in response to U.S. President Donald Trump’s decision to put a 25% levy on imported vehicles, Nikkei said.

“We constantly study options for future contingency planning and utilize short-term production shift strategies when required,” Honda Canada said. “We are confident in our ability to continue navigating current market conditions effectively.”

Honda Canada, the second-largest domestic auto manufacturer by volume in 2024, operates a plant in Alliston, Ontario.

Mexican Economy Minister Marcelo Ebrard said on Tuesday in an X post that Honda executives in the country have told the government they have no plans to modify their production there.

In the weeks before the new U.S. levy went into effect, Reuters reported that Honda planned to make its next-generation Civic hybrid in the U.S. state of Indiana, instead of Mexico, to avoid potential tariffs.


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