Honda has announced it will manufacture its next-generation Civic hybrid in Indiana, shifting production from Mexico due to potential U.S. tariffs. The move comes as automakers react to policy changes that could impact manufacturing costs and supply chains.
According to Reuters, the Civic hybrid was initially slated for production in Guanajuato, Mexico, beginning in November 2027. However, with the potential for a 25% tariff on Mexican-made goods, Honda has opted to relocate production to its Indiana facility.
The Indiana Auto Plant in Greensburg will begin manufacturing the Civic hybrid in May 2028. Sources have estimated the Indiana plant will have an approximate annual output of 210,000 vehicles.
This decision highlights the impact of trade policy on the auto industry. Honda’s shift follows broader trends of manufacturers reconsidering overseas production due to economic and regulatory uncertainty. The company’s decision ensures that production remains within U.S. borders, potentially protecting jobs and strengthening domestic manufacturing.
President Trump’s tariffs on Canada, China, and Mexico are set to go into effect on March 4th, resulting in:
- 25% tariffs on all Mexico imports
- 25% tariffs on nearly all Canadian imports , 10% on Canadian energy resources
- 10% tariffs on all China imports
As automakers navigate changing trade policies, further production adjustments may follow across the industry.
With this shift, Honda’s decision reflects a broader trend driven by Trump’s economic policies, which have prioritized American manufacturing and job growth. His stance on tariffs and trade has incentivized companies to keep production within U.S. borders, securing domestic jobs and strengthening the nation’s industrial base.
