Honda to boost US manufacturing, shift production from Canada, Mexico in response to Trump tariffs

Honda is reportedly preparing to importantly expand its US manufacturing footprint successful consequence to sweeping caller car tariffs introduced by nan Trump administration.

The Japanese automaker is considering shifting accumulation of respective cardinal models from Mexico and Canada to nan US pinch nan extremity of ensuring that 90% of nan cars it sells successful nan states are built domestically, according to a study successful nan Nikkei newspaper.

Honda plans to boost its accumulation successful nan US by up to 30% complete nan adjacent two-to-three years, nan Nikkei reported.

The move would beryllium a nonstop consequence to President Donald Trump’s recently imposed 25% tariff connected imported vehicles — a argumentation that has upended accumulation plans crossed nan car industry.

Nissan will reportedly trim Japanese accumulation of its top-selling US model, nan Rogue SUV, complete nan adjacent fewer months — becoming nan latest world automaker to change manufacturing plans successful consequence to caller US import tariffs.

Honda, nan second-largest Japanese automaker by sales, has agelong depended connected nan US arsenic its astir important market.

Last year, it sold astir 1.4 cardinal vehicles stateside — astir 40% of its world full — pinch astir two-fifths of those cars imported from Canada and Mexico.

In nan first 4th of this twelvemonth alone, US income roseate 5% to astir 352,000 vehicles.

To mitigate tariff costs and support pricing competitiveness, Honda now plans to move accumulation of its celebrated CR-V SUV from Canada to US facilities, and displacement assembly of its HR-V SUV from Mexico to American plants.

It has besides reportedly decided to manufacture nan next-generation Civic hybrid successful Indiana alternatively than Mexico.

The Nikkei study adds that Honda whitethorn prosecute much American workers to support these changes and could grow accumulation operations to see a three-shift schedule pinch play work.

Honda declined to remark connected nan report.

Honda’s anticipated reshuffle is conscionable 1 of respective caller moves by awesome manufacturers seeking to shield themselves from nan fallout of nan Trump administration’s waste and acquisition policy.

General Motors and Nissan said past week that they would beryllium ramping up accumulation astatine their US facilities.

GM said it would beryllium adjusting its accumulation attack by moving much assembly of its in-demand light-duty trucks to its works successful Fort Wayne, Ind.

At present, GM manufactures its Chevrolet Silverado and GMC Sierra pickups astatine plants successful nan US, Mexico and Canada.

In a akin move, Nissan announced it will proceed operating 2 shifts astatine its works successful Smyrna, Tennessee — stepping backmost an earlier scheme to trim to a azygous shift.

The institution pointed to nan necessity of strengthening home manufacturing successful nan look of caller tariffs affecting vehicles shipped from Japan and Mexico.

Hyundai past period opened a caller manufacturing facility successful Ellabell, Ga., wherever it plans to nutrient 500,000 electrical vehicles annually — up from an first 300,000.

Hyundai says it will walk $21 cardinal crossed its US operations by 2028, pinch $6 cardinal earmarked for localizing parts, enhancing logistics and investing successful home alloy production.

Samsung Electronics and LG Electronics are besides reportedly weighing accumulation shifts.

A South Korean newspaper reports that Samsung is considering moving dryer manufacturing from Mexico to its works successful South Carolina, while LG is evaluating a akin move for refrigerator accumulation to its Tennessee facility.

Generac Power Systems, which offshored to China successful 2001, has reversed people by repatriating accumulation of a cardinal constituent to its Wisconsin works — creating astir 80 jobs.

This reflects a broader reshoring inclination that has taken clasp crossed nan US manufacturing landscape, which analysts property to rising labour and carrier costs successful China, increasing concerns astir value power and proviso concatenation disruptions.

Other companies following nan reshoring trend see General Electric, Caterpillar, Toyota, Siemens, and Baltimore-based Zentech Manufacturing — each of which person precocious expanded aliases launched caller home operations, peculiarly successful nan southeast, wherever labour costs stay comparatively low.