LISTEN: Honda Moving Civic Production to Indiana Due to Tariffs

Honda has scrapped production plans for its Civic Hybrid in Mexico, shifting production to an Indiana facility.

Japan’s second-largest automaker makes the shift with tariffs and trade wars in mind—President Donald Trump has imposed 25% tariffs on Mexican-made products. About 80% of Honda’s Mexican exports wind up in the United States, selling 1.4 million cars and trucks in the U.S. last year. Furthermore, about 40% of Honda’s U.S. sales are imported from Mexico and Canada. Honda may still face retaliatory tariffs as the automaker exports some 60,000 U.S.-made cars to Mexico and Canada.