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Honda Civic Type R performance hatchback car on display at the AutoSalon in Brussels, Belgium.KEY TAKEAWAYS
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Honda plans to produce its next Civic hybrid in Indiana rather than Mexico to avoid the impact of possible upcoming tariffs, according to a Reuters report,.
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According to the report, around 80% of Honda’s production in Mexico goes to the U.S. and the Japanese automaker had picked Mexico for the new Civic "because rising costs were making it tough to produce the car in Indiana and Canada."
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President Trump said last week that he plans to impose 25% tariffs on products from Mexico and Canada beginning Tuesday.
Honda Motor (HMC) plans to produce its next Civic hybrid in Indiana rather than Mexico to avoid the impact of possible tariffs, according to a Reuters report.
Honda had initially planned to make the next-generation Civic in Guanajuato in Mexico, Reuters wrote Monday, citing three people familiar with the matter, but now plans to build the latest model of its top-selling car in Indiana starting in May 2028.
According to the report, around 80% of Honda’s production in Mexico goes to the U.S. and the Japanese automaker had picked Mexico for the new Civic "because rising costs were making it tough to produce the car in Indiana and Canada."
“Honda has made no such announcement and will not comment on this report," a company spokesperson told Investopedia. "The Honda Civic has been made in our Indiana Auto Plant since the facility opened in 2008 based on our longstanding approach to build products close to the customer. We have the flexibility to produce products in each region based on customer needs and market conditions.”
President Donald Trump said last week that he plans to impose 25% tariffs on products from Mexico and Canada beginning Tuesday. Trump said the tariffs against Canada and Mexico would stay in place until fentanyl smuggling was stopped or seriously limited. The administration also sees the levies as a way to bring manufacturing jobs to the U.S., with the generated revenue helping to balance the budget.
Shares in Honda, whose plan to merge with rival Nissan fell apart last month, have lost about a fifth of their value in the past year. Honda's U.S.-listed shares edged higher in recent trading.
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