Honda is considering shifting some of its automotive production from Canada and Mexico to the US due to President Donald Trump’s latest tariffs, according to a report by Japanese newspaper Nikkei. The automaker aims to ensure 90% of US sales are with vehicles produced domestically.
To achieve this goal, Honda plans to increase US production by 30% over the next couple of years by adding more employees and shifts to its US operations for CR-V and Civic models. This move would support the company’s domestic production targets.
Mexican Economy Minister Marcelo Ebrard has stated that there are no changes to Honda’s production plans in Mexico, despite reports of potential shifts. Hyundai is also planning to invest $20 billion in US manufacturing, including a next-generation steel plant that will supply two US plants and employ over 1,400 people.
The Trump administration argues that tariffs will strengthen the US automotive sector, but car experts argue that they will exacerbate affordability issues due to the complexity of global production.
Source: https://www.foxbusiness.com/fox-news-auto/honda-considers-moving-some-mexico-canada-production-us-due-tariffs