Honda's Strategic Move in Response to US Tariffs

In a bold response to President Donald Trump's imposition of a 25% tariff on cars not made in the US, Honda Motor Co., Ltd. is reportedly considering a significant shift in its production strategy. According to Nikkei, the Japanese automaker is exploring the possibility of relocating its car manufacturing operations from Mexico and Canada to the United States.

Ambitious Plans to Boost Local Production

This strategic move aims to ensure that 90% of Honda's unit sales in the US are met by vehicles manufactured locally. The company is said to be planning an impressive 30% increase in its US production capacity over the next two to three years, signaling a strong commitment to adapting to the current trade policies.

Trump's Potential Tariff Pause

Meanwhile, President Trump hinted at a possible temporary halt to the auto tariffs during a press briefing in the Oval Office. He mentioned that such a pause would "help some of the car companies" by giving them "a little bit of time" to adjust their production locations to the US, reflecting the administration's flexible approach to trade policies.