Honda Plans 90% US Output Amid Tariff Pressure: Nikkei

Honda is reportedly preparing to shift a significant portion of its auto production from Mexico and Canada to the United States. Although the company has not officially confirmed the move, reports from Nikkei suggest it is a response to the 25% tariff imposed by US President Donald Trump on imported vehicles. The Japanese automaker reportedly aims to manufacture 90% of the vehicles it sells in the US domestically.

Honda plans to boost its vehicle production in the United States by up to 30% over the next two to three years, potentially affecting production lines currently located in Mexico and Canada. While the company has not issued an official statement, a spokesperson commented, “This information was not announced by the company,” declining further elaboration.

Canadian Finance Minister François-Philippe Champagne acknowledged the reports, stating, “We will address the report with Honda in Japan.” His comments, made ahead of a scheduled meeting with Honda executives in Japan, were echoed in coverage by Canadian public broadcaster CBC. Champagne noted that the Canadian government has not yet confirmed whether production in Canada would be affected.

Similarly, Canadian Minister of International Trade Dominic LeBlanc has engaged with the Premier of Ontario, home to Honda’s primary Canadian manufacturing facility in Alliston. This plant, which produces the Civic and CR-V models, employs approximately 4,200 workers and has an annual production capacity of 390,000 vehicles.

The United States remains Honda’s largest market, accounting for nearly 40% of the automaker’s global sales last year. In 2024, Honda sold approximately 1.4 million vehicles in the United States, including its luxury Acura models, with about two-fifths of those imported from Mexico or Canada. In 1Q25, Honda recorded a 5% increase in US sales, totaling nearly 352,000 units.

To meet its production goals, Honda is reportedly considering expanding its US workforce. According to Nikkei, the company may introduce a third production shift and weekend operations to increase output.

The potential shift comes shortly after Honda’s 2023 announcement to invest CA$15 billion (US$10.8 billion) in building four electric vehicle facilities in Ontario, including a new assembly plant. The Canadian federal government contributed CA$5 billion to the project.