Honda's Strategic Shift in Production

In a bold move responding to the recent 25% tariff imposed by US President Donald Trump on non-US-made cars, Honda Motor Co., Ltd. is reportedly considering relocating its car production from Mexico and Canada to the United States. This strategic shift aims to align with the company's goal of meeting 90% of its unit sales in the US with locally manufactured vehicles.

Production Increase Plans

According to Nikkei, the Japanese automotive giant plans to ramp up its US production by up to 30% over the next two to three years. This significant increase underscores Honda's commitment to adapting its manufacturing strategy in response to the evolving trade landscape.

Trump's Tariff Considerations

Meanwhile, President Trump hinted at a possible pause on the auto tariffs during a press briefing in the Oval Office, stating it would "help some of the car companies" as they transition their production bases to the US. This development could provide Honda and other automakers with crucial breathing room to adjust their operations.