Honda is reportedly preparing to significantly expand its US manufacturing footprint in response to sweeping new auto tariffs introduced by the Trump administration.
The Japanese automaker is considering shifting production of several key models from Mexico and Canada to the US with the goal of ensuring that 90% of the cars it sells in the states are built domestically, according to a report in the Nikkei newspaper.
Honda plans to boost its production in the US by up to 30% over the next two-to-three years, the Nikkei reported.
The move would be a direct response to President Donald Trump’s recently imposed 25% tariff on imported vehicles — a policy that has upended production plans across the auto industry.
Nissan will reportedly cut Japanese production of its top-selling US model, the Rogue SUV, over the next few months — becoming the latest global automaker to alter manufacturing plans in response to new US import tariffs.
Honda, the second-largest Japanese automaker by sales, has long depended on the US as its most important market.
Last year, it sold approximately 1.4 million vehicles stateside — nearly 40% of its global total — with about two-fifths of those cars imported from Canada and Mexico.
In the first quarter of this year alone, US sales rose 5% to nearly 352,000 vehicles.
To mitigate tariff costs and maintain pricing competitiveness, Honda now plans to move production of its popular CR-V SUV from Canada to US facilities, and shift assembly of its HR-V SUV from Mexico to American plants.
It has also reportedly decided to manufacture the next-generation Civic hybrid in Indiana rather than Mexico.
The Nikkei report adds that Honda may hire more American workers to support these changes and could expand production operations to include a three-shift schedule with weekend work.
Honda declined to comment on the report.
Honda’s anticipated reshuffle is just one of several recent moves by major manufacturers seeking to shield themselves from the fallout of the Trump administration’s trade policy.
General Motors and Nissan said last week that they would be ramping up production at their US facilities.
GM said it would be adjusting its production approach by moving more assembly of its in-demand light-duty trucks to its plant in Fort Wayne, Ind.
At present, GM manufactures its Chevrolet Silverado and GMC Sierra pickups at plants in the US, Mexico and Canada.
In a similar move, Nissan announced it will continue operating two shifts at its plant in Smyrna, Tennessee — walking back an earlier plan to reduce to a single shift.
The company pointed to the necessity of strengthening domestic manufacturing in the face of new tariffs affecting vehicles shipped from Japan and Mexico.
Hyundai last month opened a new manufacturing facility in Ellabell, Ga., where it plans to produce 500,000 electric vehicles annually — up from an initial 300,000.
Hyundai says it will spend $21 billion across its US operations by 2028, with $6 billion earmarked for localizing parts, enhancing logistics and investing in domestic steel production.
Samsung Electronics and LG Electronics are also reportedly weighing production shifts.
A South Korean newspaper reports that Samsung is considering moving dryer manufacturing from Mexico to its plant in South Carolina, while LG is evaluating a similar move for refrigerator production to its Tennessee facility.
Generac Power Systems, which offshored to China in 2001, has reversed course by repatriating production of a key component to its Wisconsin plant — creating about 80 jobs.
This reflects a broader reshoring trend that has taken hold across the US manufacturing landscape, which analysts attribute to rising labor and transport costs in China, growing concerns about quality control and supply chain disruptions.
Other companies following the reshoring trend include General Electric, Caterpillar, Toyota, Siemens, and Baltimore-based Zentech Manufacturing — all of which have recently expanded or launched new domestic operations, particularly in the southeast, where labor costs remain comparatively low.
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