Honda denies plans to shift Mexico, Canada production to US despite tariff rumors

Japanese automaker Honda has pushed back against reports that it is preparing to move all car production from Mexico and Canada to the United States in response to new U.S. tariffs.

On Tuesday, Japanese newspaper Nikkei reported that Honda was considering relocating some vehicle assembly from its plants in Mexico and Canada to the U.S. The move, reportedly aimed at enabling Honda to meet 90% of its U.S. sales with locally produced vehicles, was said to be a response to the 25% tariff on imported vehicles imposed by President Donald Trump’s administration.

Future models of the Honda Civic will be produced in Indiana, not Mexico, according to company sources.
Nikkei’s Tuesday report that Honda was planning to move all production out of Mexico and Canada caused a strong reaction given Honda’s recent announcement that it would produce future models of the Honda Civic in the U.S. (Honda)

Mexico’s Economy Minister Marcelo Ebrard responded immediately to the news in a social media post, saying Honda executives in Mexico told him there had been no changes in production plans.

Anita Anand, Canada’s Minister of Innovation, Science and Industry, had a similar reaction, writing in a social media post of her own that “Honda has communicated that no such production decisions affecting Canadian operations have been made, and are not being considered at this time.”

Canadian Finance Minister François-Philippe Champagne said he would be talking to Honda later Tuesday to clarify the situation.

By Tuesday evening, both Honda Mexico and Honda Canada communicated to members of the news media that no decisions had been made to alter production at their respective plants. “No production decisions impacting our facilities in Mexico have been made, nor are any under consideration,” Honda Mexico said in a statement. Honda Canada echoed this, stating, “Honda Canada is not contemplating any modifications at this moment.”

Despite the denials, the rumors have unsettled officials in both countries, particularly following Honda’s earlier decision to relocate production of its bestselling model from Mexico to the U.S.

In early March, Reuters reported that Honda had scrapped plans to build its next-generation Civic at its factory in Celaya, Guanajuato. The production had been set to begin in November 2027.

Mexico had reportedly been chosen for the Civic — recently named the 2025 North American Car of the Year — because rising costs were making it tough to produce the car in Indiana and Canada. Instead, Honda is set to produce the car at its Greensburg, Indiana, plant and is expected to begin churning out around 210,000 vehicles each year beginning in March 2028.

Nearly 40% of Honda’s global sales were in the U.S., the company’s biggest market in 2024. About two-fifths of the 1.4 million Honda vehicles sold in the U.S. last year were imported from Mexico and Canada.

With reports from Reforma, Milenio, El Universal and Reuters

Have something to say? Paid Subscribers get all access to make & read comments.
Finance Minister Amador

IMF lowers its Mexican growth forecast, citing ‘uncertainties’ and Mideast conflict

0
The downgrade was immediately rebuffed by Economy Minister Edgar Amador, who said the IMF overrelied on external factors. He also noted that Mexico outperformed the IMF's forecast last year.
vert building

Data center firm Vertiv will expand its Reynosa plant, investing US $150M

0
The investment will help establish Reynosa as a leading hub for advanced manufacturing in northern Mexico and further Mexico's leadership among Latin American nations in data center development.
Toyota has been manufacturing the Tacoma in Tijuana since 2002.

Toyota set to move production out of Tijuana and into Texas

2
The Japanese automaker will gradually relocate production of the Tacoma model to its San Antonio plant over the next four years. However, Mexico's Economy Ministry hinted at a future investment announcement that may soften the blow.
BETA Version - Powered by Perplexity