Honda's Strategic Move to Avoid Tariffs

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

Boosting Local Production

This strategic move aims to ensure that 90% of Honda's unit sales in the US are met by vehicles manufactured locally. Over the next two to three years, Honda plans to ramp up its US production by as much as 30%, a clear indication of its commitment to adapting to the current trade policies.

Trump's Potential Tariff Pause

Meanwhile, President Trump hinted at a possible pause on the auto tariffs during a press briefing in the Oval Office. He mentioned the need to "help some of the car companies" by giving them "a little bit of time" to adjust their production lines to the US, signaling a temporary relief for automakers.