Honda Considers Relocating Auto Production from Canada to U.S. Amid Tariff Concerns
April 15, 2025 — Tokyo: Honda Motor Co. is reportedly evaluating plans to shift a portion of its vehicle production from Canada and Mexico to the United States. This strategic move is aimed at countering the potential impact of proposed U.S. tariffs on imported vehicles, according to a recent report by Japan’s Nikkei.
The Japanese automaker is considering increasing its U.S. production capacity by as much as 30% over the next two to three years. This would allow Honda to produce nearly 90% of the vehicles it sells in the American market within the country itself. Currently, Honda imports around 500,000 vehicles annually into the U.S., including popular models like the CR-V SUV and Civic sedan manufactured in Canada.
To support this shift, Honda may add a third production shift and extend operations to weekends at its U.S. manufacturing plants. The company has already announced that its next-generation Civic hybrid will be produced in Indiana, moving away from earlier plans to manufacture it in Mexico.
While Honda has not officially confirmed the full scale of the relocation, industry experts see this as part of a broader trend of automakers adjusting their strategies in response to evolving trade policies. The U.S. remains Honda’s largest market, accounting for approximately 40% of its global sales.
This potential production shift highlights the growing influence of geopolitical factors on manufacturing decisions, as automakers seek to maintain competitiveness and reduce exposure to international tariffs