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

Japanese automaker Honda has pushed backmost against reports that it is preparing to determination each car accumulation from Mexico and Canada to the United States successful effect to caller U.S. tariffs.

On Tuesday, Japanese paper Nikkei reported that Honda was considering relocating immoderate conveyance assembly from its plants successful Mexico and Canada to the U.S. The move, reportedly aimed astatine enabling Honda to conscionable 90% of its U.S. income with locally produced vehicles, was said to beryllium a effect to the 25% tariff connected imported vehicles imposed by President Donald Trump’s administration.

Nikkei’s Tuesday study that Honda was readying to determination each accumulation retired of Mexico and Canada caused a beardown absorption fixed Honda’s caller announcement that it would nutrient aboriginal models of the Honda Civic successful the U.S. (Honda)

Mexico’s Economy Minister Marcelo Ebrard responded instantly to the quality successful a societal media post, saying Honda executives successful Mexico told him determination had been nary changes successful accumulation plans.

Anita Anand, Canada’s Minister of Innovation, Science and Industry, had a akin reaction, writing successful a societal media station of her own that “Honda has communicated that nary specified accumulation decisions affecting Canadian operations person been made, and are not being considered astatine this time.”

Canadian Finance Minister François-Philippe Champagne said helium would beryllium talking to Honda aboriginal Tuesday to clarify the situation.

By Tuesday evening, some Honda Mexico and Honda Canada communicated to members of the quality media that nary decisions had been made to change accumulation astatine their respective plants. “No accumulation decisions impacting our facilities successful Mexico person been made, nor are immoderate nether consideration,” Honda Mexico said successful a statement. Honda Canada echoed this, stating, “Honda Canada is not contemplating immoderate modifications astatine this moment.”

Despite the denials, the rumors person unsettled officials successful some countries, peculiarly pursuing Honda’s earlier determination to relocate accumulation of its bestselling exemplary from Mexico to the U.S.

In aboriginal March, Reuters reported that Honda had scrapped plans to physique its next-generation Civic astatine its mill successful Celaya, Guanajuato. The accumulation had been acceptable to statesman successful November 2027.

Mexico had reportedly been chosen for the Civic — precocious named the 2025 North American Car of the Year — due to the fact that rising costs were making it pugnacious to nutrient the car successful Indiana and Canada. Instead, Honda is acceptable to nutrient the car astatine its Greensburg, Indiana, works and is expected to statesman churning retired astir 210,000 vehicles each twelvemonth opening successful March 2028.

Nearly 40% of Honda’s planetary income were successful the U.S., the company’s biggest marketplace successful 2024. About two-fifths of the 1.4 cardinal Honda vehicles sold successful the U.S. past twelvemonth were imported from Mexico and Canada.

With reports from Reforma, Milenio, El Universal and Reuters