Automaker Honda Motor plans to relocate part of its vehicle and parts assembly operations from Canada and Mexico to the United States.
The decision comes in response to a 25% import tariff on automobiles imposed by the administration of former U.S. President Donald Trump, according to Nikkei.
Currently, Honda sells around 1.42 million vehicles in the U.S., accounting for roughly 40% of its global sales. About 1 million of these vehicles are assembled domestically, while around 500,000 are imported—primarily from Canada.
Japanese carmakers had previously benefited from a trade agreement between the U.S., Canada, and Mexico, which allowed duty-free imports if certain conditions were met. This encouraged manufacturers to base production in countries with lower labor costs. However, the introduction of new tariffs has changed the landscape.
In response, Honda plans to boost its U.S. production by 30%. Once the transition is complete, approximately 90% of the Honda vehicles sold in the U.S. will be manufactured within the country. Specifically, production of the CR-V and Civic models will move from Canada to the U.S., while assembly of the HR-V will be shifted from Mexico. The entire process is expected to take at least two years.
