Tokyo – Arab Canada News

The Japanese newspaper Nikkei reported on Tuesday that Honda, the second largest car company in Japan by sales volume, is considering shifting part of its production from Canada and Mexico to the United States as part of its new strategy to adapt to the new U.S. tariffs imposed by President Donald Trump at a rate of 25% on imported cars.

According to the report, Honda aims to produce up to 90% of the cars intended for the U.S. market within the United States itself over the next two to three years, representing an increase of up to 30% in domestic production capacity.

Production shifts and changes in assembly lines

Nikkei stated that Honda plans to move production of the CR-V SUV from its plants in Canada to the United States, as well as the HR-V SUV from Mexico to U.S. territory. Previous reports from Reuters indicated that the company intends to manufacture the next generation of the hybrid Civic car in Indiana instead of Mexico, to avoid the new tariffs.

The U.S. market represents about 40% of Honda's global sales, with the company selling 1.4 million vehicles, including luxury Acura models, in the United States during 2024. Of these vehicles, nearly 40% were imported from Canada or Mexico.

Increase in employment and domestic production

The Japanese newspaper pointed out that the company is considering expanding the number of shifts at its U.S. factories from two to three, and operating production lines during weekends, which may require hiring more American workers to boost production capacity.

Honda declines to comment

For its part, Honda declined to comment on these reports, stating that the information provided "has not been announced by the company."

Honda's sales in the United States had increased by 5% in the first quarter of this year, recording approximately 352,000 vehicles.

Contextual analysis

This move is seen as a direct response to the firm trade policies of the Trump administration, which are placing increasing pressure on global car companies to reposition their production chains within the United States to avoid extra costs. These shifts are a clear sign of the impact of the new tariffs on regional manufacturing dynamics in North America.