OAN Staff James Meyers
9:58 AM – Tuesday, April 15, 2025
Car manufacturer Honda is reportedly in the works to massively expand its manufacturing production in the United States due to President Donald Trump’s new auto tariffs.
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The Japanese automaker is now considering shifting major production from Canada and Mexico to the U.S. with the outcome of ensuring 90% of the cars it sells in America are built domestically, according to the Nikkei newspaper.
The outlet also reported that it is planning on increasing production across the U.S. by almost 30% over the next two-to-three years.
The reported move would be in direct response to the Trump administration’s recently imposed 25% tariff on imported vehicles.
Additionally, Nissan will reportedly cut Japanese production of its best selling model, the Rogue SUV, over the next few months, making them the latest automaker to alter manufacturing plans in response to the new U.S. import tariffs.
Honda, which is the second-biggest Japanese automaker by sales, has relied on the U.S. as its most important market.
In 2024, it sold 1.4 million vehicles in the states, almost 40% of its global total, with almost two-fifths of those cars imported from Mexico and Canada.
In the first quarter of this year, U.S. sales increased by 5% to almost 352,000 vehicles.
Additionally, in efforts to cut costs and improve pricing competitiveness, Honda is planning to move production of its CR-V SUV model from Canada to the U.S., and move assembly of its HR-V SUV from Mexico to American assembly plants.
The report also indicated Honda may add more American workers to help in the changes and could expand production operations to include a three-shift schedule with weekend work.
Furthermore, General Motors (GM) and Nissan stated last week they will be increasing production at their U.S. facilities.
As of now, GM manufactures its Chevrolet Silverado and GMC Sierra pickups at plants in the U.S., Canada and Mexico.
In a similar move, Nissan announced it will continue operating two shifts at its plant in Smyrna, Tennessee, despite an earlier plan to reduce to a single shift.
Last month, Hyundai opened a new manufacturing facility in Ellabell, Georgia, with plans of producing 500,000 electric vehicles annually, which is up from its initial 300,000.
Hyundai also said it will spend $21 billion across its U.S. operations by 2028, with $6 billion used for localizing parts, investing in domestic steel production and enhancing logistics.
Meanwhile, other companies following the trend are Toyota, General Electric, Caterpillar, Siemens, and Zentech manufacturing. All the companies have recently expanded or launched new domestic operations in the U.S.
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