Honda Considers U.S. Production Shift Amid Tariffs

In response to new U.S. tariffs, Honda is considering shifting some car production from Canada and Mexico to the U.S., aiming for 90% of its U.S. sales to be domestically produced. This strategy involves increasing U.S. production by up to 30% over the next two to three years, which could involve relocating CR-V production from Canada and HR-V production from Mexico. While Honda has not confirmed these plans, reports indicate that this move is a direct response to President Trump's 25% tariff on imported vehicles, affecting the integrated North American auto supply chain. Despite reports of potential production shifts, Canadian officials, including Ontario Premier Doug Ford and federal representatives, have stated that Honda has made no definitive decisions regarding moving production out of Canada. Canadian Prime Minister Mark Carney has announced that U.S.-made vehicles can be imported tariff-free if carmakers maintain production and investment in Canada, as a countermeasure to U.S. tariffs. The potential shift in Honda's production strategy is seen as a significant move to mitigate tariff impacts and protect its market share in the U.S., its largest sales market.