Honda May Shift More Car Production to the US Amid Tariff Concerns
Japanese carmaker Honda is reportedly thinking about moving more of its car production from Mexico and Canada to the United States, according to the financial newspaper Nikkei. The goal? To have up to 90% of the cars it sells in the US made there.
This move comes in response to a 25% import tariff on foreign-made vehicles introduced by former US President Donald Trump. The idea behind the tariff was to encourage carmakers to create more jobs and invest in manufacturing within the US. Recently, Trump even hinted at pausing the tariff temporarily, to give automakers more time to adjust and move operations.
Nikkei reports that Honda may increase its US car production by around 30% over the next three years. However, the company hasn’t officially confirmed or commented on these plans.
Honda isn’t alone in reconsidering its production strategy. Nissan is also said to be exploring the possibility of shifting some of its US-bound vehicle manufacturing from Japan to the US, possibly as soon as this summer.
In contrast, Jaguar Land Rover recently announced that it would pause all vehicle shipments to the US, as it tries to adapt to the new trading rules following the tariffs.
This shake-up in global car manufacturing highlights how much international trade policies can affect where and how our vehicles are made. If Honda and others do make these changes, we may soon see more “Made in USA” labels on cars across the pond.