By SEMA News Editors
Automaker Honda will move its next-generation Civic Hybrid production from Guanajuato, Mexico, to Indiana, due to increased tariffs under the Trump Administration, according to Reuters and additional reports. It is unclear where production will take place in the state, though Honda does have an Indiana Auto Plant in Greensburg, about an hour southeast of Indianapolis. Production on the next-generation Civic Hybrid was initially slated to begin in November 2027 in Mexico and will now start in May 2028, with plans for around 210,000 vehicles per year, according to their sources.
SEMA News connected with Honda, which shared an official statement:
Honda has made no such announcement and will not comment on this report. 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.
The news comes after, starting on March 4 at midnight, imports from Canada and Mexico have increased to 25%. In addition, Trump doubled the Chinese tax from 10% to 20%. At the start of the new administration, President Trump announced new tariffs on imported steel and aluminum, two critical raw materials used in the manufacturing of motor vehicles, parts and accessories.
It should be noted that President Trump prefers to employ tariffs as chips at the bargaining table. During Trump's first term, he imposed tariffs of 25% on steel and 10% on aluminum, only to later grant duty-free exceptions to several trading partners, including Canada and Mexico. Argentina, Australia, Brazil and South Korea were excluded from the 2018 steel and aluminum tariffs. SEMA's Washington, D.C., office continues to follow this news and how it will impact the automotive aftermarket and motorsports industries.
In related news, Reuters also recently reported that Honda's merger with Nissan has been cancelled after the two automakers could not agree to the terms.
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