• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Honda considers ramping up US production to offset Trump tariffs, aims for 90% local output

by April 15, 2025
written by April 15, 2025

Honda Motor Co. is considering shifting a significant portion of its vehicle production from Mexico and Canada to the United States, amid escalating trade tensions triggered by a new 25% tariff on imported automobiles announced by US President Donald Trump, Nikkei reported on Tuesday.

The Japanese automaker aims to have 90% of cars sold in the US built locally, according to the report.

The company is reportedly looking to increase its US production capacity by as much as 30% over the next two to three years.

The move would help shield the company from the hefty import levy, which could otherwise cost Honda an estimated $4.57 billion annually.

Honda declined to comment on the report, saying the details had not been announced by the company.

New strategy includes Civic hybrid production in Indiana

Even before the tariff was made official, Honda had taken steps to mitigate the risk of higher import costs.

Reuters earlier reported that the next-generation Civic hybrid will be manufactured in Indiana, rather than in Mexico, where production had been originally planned.

The United States remains Honda’s largest market, accounting for nearly 40% of its global vehicle sales.

Last year, Honda sold approximately 1.4 million cars in the US, with about 1 million already built domestically.

Despite the provisions of the US-Mexico-Canada Agreement (USMCA), which allows for tariff-free trade under certain conditions, the 25% tariff applies even to vehicles that meet USMCA origin requirements.

While increasing US-made content can reduce some of the tariff impact, it cannot fully eliminate it, the Nikkei report said.

To ramp up production in the US, Honda is said to be weighing operational changes including adding a third work shift, expanding weekend production, and hiring additional workers.

However, the reconfiguration is expected to take at least two years due to the complex nature of realigning supply chains and factory capacities.

Automaker shares rise as Trump signals possible exemptions

Shares of automakers worldwide rose following remarks from President Trump suggesting the administration might consider temporary exemptions from the tariffs.

“I’m looking at something to help some of the car companies,” Trump said in Washington, adding that firms “need a little bit of time” to restructure their manufacturing operations.

The prospect of relief buoyed stocks across the sector.

Toyota and Honda gained 3.7% and 3.6% respectively, while Tata Motors rose 4.7% and Hyundai climbed 4.3%.

European carmakers, including Volkswagen, Mercedes-Benz, and BMW, also posted gains of over 2%.

Industry rethinks strategy as others respond to tariffs

Automakers have begun reevaluating their production strategies in response to the trade policy shift.

Stellantis has announced temporary shutdowns at its Windsor and Toluca plants. Ford is leaning on domestic inventory, launching a customer-wide “From America for America” pricing initiative.

General Motors is boosting output at its Fort Wayne, Indiana, plant to meet expected demand for light-duty trucks.

The industry now faces a period of strategic recalibration as it adapts to the new economic landscape shaped by Washington’s evolving trade agenda.

The post Honda considers ramping up US production to offset Trump tariffs, aims for 90% local output appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
US stocks climb higher on Tuesday: Dow jumps 180 points, Nasdaq up 0.4%
next post
IEA joins OPEC in trimming oil demand forecast amid trade strains

related articles

Asian markets close: Nikkei, Kospi down; Sensex closes...

May 19, 2025

Qualcomm unveils AI chips for data centres with...

May 19, 2025

Best crypto to buy now: Bitcoin Pepe leads...

May 19, 2025

JPMorgan cuts Netflix rating, citing balanced risk-reward post-rally;...

May 19, 2025

Bitcoin ETF open interest dips 5% to $29.47B...

May 19, 2025

US stocks slip in the red on Monday:...

May 19, 2025

Should Klarna IPO remain on watch list after...

May 19, 2025

Why this brokerage downgraded UnitedHealth’s rating to ‘hold’

May 19, 2025

Nvidia opens NVLink Fusion ecosystem, expands Taiwan footprint...

May 19, 2025

Cathie Wood says Trump’s tariffs could unlock tech...

May 19, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • White House says it didn’t create a banned word list, leaves language choices up to agencies

    March 18, 2025
  • Revolut Crypto App: Convenient, But Are the Fees Worth It?

    July 15, 2024
  • Trump unveils sanctions against International Criminal Court for Netanyahu arrest warrant

    February 7, 2025
  • GOP senators: Congress should vote on Trump’s potential Iran nuclear deal

    May 8, 2025
  • ApeCoin and Akita Inu: Akita Inu has moved down to support

    July 23, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,735)
  • Investing (624)
  • Stock (775)

Latest Posts

  • Turkey’s invasion threats should be taken ‘very seriously’: Cyprus official

    August 11, 2024
  • Trump ally Sen. Tim Scott’s new mission to help incoming president: ‘increase the majority’

    November 15, 2024
  • Nasdaq is testing a key support level, which stocks hold the key?

    July 30, 2024

Recent Posts

  • Long ESTC:  Elastic’s Robust Earnings and AI Initiatives Propel Bullish Stock Momentum

    March 3, 2025
  • Trump attorney general nominee Pam Bondi to testify before Judiciary Committee

    January 15, 2025
  • Democrat godfathers make Biden offer they hope he can’t refuse

    July 19, 2024

Editor’s Pick

  • Why Trading 212 is Bad or Good?

    July 10, 2024
  • Mutiny threat sparks House GOP infighting ahead of Trump visit: ‘Just more stupid’

    November 13, 2024
  • CrowdStrike faces double downgrade amid IT outage fallout as Cathie Wood seizes the opportunity

    July 22, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock