Honda denies reported plan to shift production from Canada, Mexico to US in response to Trump tariffs
Honda on Tuesday said it has no plans to move car production from Canada and Mexico to the US, following a report that the Japan auto giant was considering shifting some operations to avoid potentially devastating tariffs.
“No changes are being considered at this time,” Honda Canada said in an emailed statement.
“Honda has not made any production decisions that affect operations in Mexico, nor are any currently being considered,” Honda Mexico said in an emailed statement.
The denials came after the Nikkei newspaper reported that Japan’s second-biggest automaker was considering switching some car production from US’ neighbors aiming for 90% of vehicles sold in the country to be made there.
Honda plans to boost its production in the US by up to 30% over the next two-to-three years, the outlet reported.
Honda Canada, the second-largest domestic auto manufacturer by volume in 2024, operates a plant in Alliston, Ontario.
“We constantly study options for future contingency planning and utilize short-term production shift strategies when required,” Honda Canada said. “We are confident in our ability to continue navigating current market conditions effectively.”
Honda has long depended on the US as its most important market.
Last year, it sold approximately 1.4 million vehicles in the US — nearly 40% of its global total — with about two-fifths of those cars imported from Canada and Mexico.
In the first quarter of this year, US sales rose 5% to nearly 352,000 vehicles.
Meanwhile, Honda rival Nissan will cut Japanese production of its top-selling US model, the Rogue SUV, over the next few months, sources told Reuters on Tuesday.
The third-largest Japanese automaker said in a statement it was reviewing its production and supply chain operations to identify optimal solutions for efficiency and sustainability. It said it was committed to adapting to market changes while prioritizing workforce and production capabilities.
“Our approach will be thoughtful and deliberate as we navigate both immediate and long-term effects,” it said.
The announcement came a day after Trump said he was considering modifying the auto levy because automakers “need a little bit of time.”
General Motors and Nissan said last week that they would be ramping up production at their US facilities.
GM said it would be adjusting its production approach by moving more assembly of its in-demand light-duty trucks to its plant in Fort Wayne, Ind.
At present, GM manufactures its Chevrolet Silverado and GMC Sierra pickups at plants in the US, Mexico and Canada.
In a similar move, Nissan announced it will continue operating two shifts at its plant in Smyrna, Tenn. — walking back an earlier plan to reduce to a single shift.
The company pointed to the necessity of strengthening domestic manufacturing in the face of new tariffs affecting vehicles shipped from Japan and Mexico.
Hyundai last month opened a new manufacturing facility in Ellabell, Ga., where it plans to produce 500,000 electric vehicles annually — up from an initial 300,000.
Hyundai says it will spend $21 billion across its US operations by 2028, with $6 billion earmarked for localizing parts, enhancing logistics and investing in domestic steel production.
Samsung Electronics and LG Electronics are also reportedly weighing production shifts.
A South Korean newspaper reports that Samsung is considering moving dryer manufacturing from Mexico to its plant in South Carolina, while LG is evaluating a similar move for refrigerator production to its Tennessee facility.
Generac Power Systems, which offshored to China in 2001, has reversed course by repatriating production of a key component to its Wisconsin plant — creating about 80 jobs.
This reflects a broader reshoring trend that has taken hold across the US manufacturing landscape, which analysts attribute to rising labor and transport costs in China, growing concerns about quality control and supply chain disruptions.
Other companies following the reshoring trend include General Electric, Caterpillar, Toyota, Siemens, and Baltimore-based Zentech Manufacturing — all of which have recently expanded or launched new domestic operations, particularly in the southeast, where labor costs remain comparatively low.
