TOKYO (Reuters) – Honda is considering switching some car production from Mexico and Canada to the U.S. with the aim of 90% of cars sold in the country sold locally in response to new U.S. car tariffs, Honda reported.
Nikkei said the second largest automaker in Japan's sales program increased U.S. cars production by 30% in two to three years in response to President Donald Trump's decision to impose a 25% tax on imported cars.
Honda declined to comment, saying the information was not announced by the company.
In the weeks leading up to the new U.S. tax, Reuters has reported that Honda plans to make its next-generation citizen hybrid in Indiana, U.S., instead of Mexico, to avoid potential tariffs.
The United States was Honda's largest market last year, accounting for nearly 40% of global sales. The automaker sold 1.4 million cars in the U.S. last year.
(Reported by Kantaro Komiya, Satoshi Sugiyama and Daniel Leussink; Editors by Kirsten Donovan)
