Honda (HMC.US) is considering shifting some car production from Canada and Mexico to the US to deal with the impact of tariffs

The Zhitong Finance App learned that according to reports, Honda Motor Company (HMC.US) is considering transferring some automobile production from Mexico and Canada to the US; in order to cope with the new US automobile tariffs, the Japanese automaker aims to produce 90% of cars sold in the US locally. In response to the US tariff plan, Honda plans to increase US car production by 30% over the next few years.

Currently, Honda's annual sales volume in the US is 1.42 million units, of which 1 million have already been manufactured in the US. By increasing local production by 30%, the automaker will be able to produce cars equivalent to 90% of local sales in the US. Production of CR-V SUVs and Civic sedans manufactured in Canada will move to the US. Industry insiders expect Honda to pass on the higher cost of manufacturing in the US to consumers, especially as tariffs on auto parts are extended.