Home » Honda Yanks Production Of One Of Its Top Cars From Mexico After Tariffs: Report

Honda Yanks Production Of One Of Its Top Cars From Mexico After Tariffs: Report

Honda has reportedly decided to produce its next generation Civic hybrid in Indiana rather than Mexico to avoid the brunt of tariffs the United States is expected to put in place this week. Honda’s decision regarding one of its top selling models would be the first by a Japanese car company to reorient its supply …

Honda has reportedly decided to produce its next generation Civic hybrid in Indiana rather than Mexico to avoid the brunt of tariffs the United States is expected to put in place this week.

Honda’s decision regarding one of its top selling models would be the first by a Japanese car company to reorient its supply chains around the potential tariffs, according to Reuters. Mexico was previously seen as a lower cost location for car-making to avoid higher labor costs in Canada and the United States, but Honda executives turned toward Indiana after President Donald Trump threatened to levy 25% tariffs against Mexico.