Honda to boost US manufacturing, shift production from Canada, Mexico in response to Trump tariffs

Core Viewpoint - Honda is planning to significantly expand its manufacturing operations in the US in response to new auto tariffs imposed by the Trump administration, aiming for 90% of its US sales to be produced domestically [1][4]. Group 1: Manufacturing Expansion - Honda intends to increase its US production capacity by up to 30% over the next two to three years [2]. - The company plans to shift production of key models, including the CR-V SUV from Canada and the HR-V SUV from Mexico to US facilities [6]. - Honda is also set to manufacture the next-generation Civic hybrid in Indiana instead of Mexico [6]. Group 2: Market Importance - The US market is crucial for Honda, accounting for approximately 40% of its global sales, with around 1.4 million vehicles sold in the US last year [5]. - In the first quarter of this year, Honda's US sales increased by 5% to nearly 352,000 vehicles [5]. Group 3: Industry Response - Honda's strategy reflects a broader trend among automakers to adjust production plans due to the 25% tariff on imported vehicles, with other companies like General Motors and Nissan also ramping up US production [4][7]. - The reshuffling of production is part of a larger reshoring trend in the US manufacturing sector, driven by rising costs and supply chain concerns [14][15].