Japanese automaker Honda on Wednesday revealed plans to relocate the production of its Civic hybrid model from Japan to the United States. The shift is expected to take place around June or July, aligning with the upcoming discussions on tariffs between U.S. President Donald Trump and a Japanese envoy.
Honda told the Argus that it will begin producing Civic models at its U.S. facility as early as June, potentially to avoid U.S. tariffs on imported vehicles.
The company will halt the Civic Hybrid 5-door model production at its Yorii plant in eastern Japan and switch manufacturing to its U.S. facility in Indiana. Honda has manufactured 3,000 units of the model over February and March.
The company stated that the production adjustment integrates with its mid-to-long-term ‘optimization strategy’ and is not intended as a response to the 25% tariff on automobile imports imposed by the U.S. However, as Honda only began producing the model in February, the move might be a broader effort to reduce delivery costs to the U.S. market.
Honda did not reveal whether its Indiana facility will source auto parts from suppliers based in Canada or Mexico.
The Japanese auto industry remains cautious amid uncertainties in U.S. tariff policies, despite President Trump’s April 14 hint at a possible pause. Tokyo and Washington will hold talks this week to address trade issues, including auto tariffs and the 24% ‘reciprocal’ tariffs on Japanese imports.
The U.S. president has consistently voiced concerns over the auto trade imbalance between the two nations. In 2024, Japan exported approximately 1.3 million passenger vehicles to the U.S. while importing only about 23,000 U.S.-made passenger vehicles in 2023.
The U.S. accounts for about 40% of Honda’s total sales, equating to roughly 1.42 million vehicles annually. Of these, approximately 70% are produced domestically, including models such as the Accord, Pilot, Odyssey, and Ridgeline.
GENERAL | Stellantis Faces Lawsuits Over Defective Takata Airbags
