Honda Might Build Next Civic in the US to Avoid Tariffs

Production could start in May 2028.

Photo by: Motor1.com

By: Anthony Alaniz

Mar 3, 2025 at 2:36pm ET

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Honda might build the next-generation Civic Hybrid right here in America. The automaker currently produces the model at its factory in Ontario, Canada, but a new report alleges that a plan to move production of the next-gen model to Mexico is dead. Instead, the company will build the car at its facility in Indiana starting in May 2028.

The “three people familiar with the matter” who spoke with Reuters told the publication Honda decided to shift production to avoid US President Donald Trump’s 25 percent tariff on imported goods from Mexico and Canada. The automaker had planned to begin producing the next-gen Civic Hybrid at its Guanajuato, Mexico, plant in November 2027.

According to Reuters's sources, the factory is expected to build 210,000 Civic Hybrids annually. If that’s not enough, the company would import the rest from countries unaffected by tariffs. That could be difficult, however, as Trump has proposed enacting a 25 percent duty on all car imports as soon as April 2 in addition to the tariffs on Mexico and Canada.

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The threat of tariffs has caused automakers to consider moving production to the United States. One report alleges Mercedes-Benz could localize production of the C- or E-Class model in Alabama. Another report suspects Porsche and Audi could build some of their models in the US. Those are just rumors, however. Either way, automakers likely have contingency plans for whatever the administration decides to do.

Ford CEO Jim Farley said last month that the 25 percent tariffs on goods from Mexico and Canada, which are expected to go into effect March 4, would “blow a hole in the US industry that we have never seen” and could cause “a lot of costs and a lot of chaos,” leading to “higher prices for consumers” and wiping out profits.