Honda plans to relocate production of one of its best-selling car models from Mexico to the U.S. to avoid potential tariffs, Reuters reported Monday.
The automaker will shift production of its next-generation Civic hybrid to Indiana, according to three anonymous sources cited by Reuters. This decision follows former President Donald Trump’s February 1 announcement imposing 25% tariffs on imports from Canada and Mexico, along with 10% tariffs on Chinese goods, as part of efforts to curb illegal immigration and the flow of dangerous drugs into the U.S.
When announcing the tariffs, the White House stated that Trump was “taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.”
Trump later agreed to temporarily pause the implementation of new tariffs on Mexico and Canada after the Mexican government committed to deploying additional troops to the U.S.-Mexico border, and Canadian Prime Minister Justin Trudeau pledged to enhance security along the northern border.
However, in a post on Truth Social on Thursday, Trump stated that illicit drugs were still entering the U.S. at “unacceptable levels” and that the 25% tariffs on imports from Canada and Mexico would resume on March 4. He also announced plans to double the 10% tariffs on Chinese imports on the same day.
“Drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels,” Trump wrote. “A large percentage of these Drugs, much of them in the form of Fentanyl, are made in, and supplied by, China. More than 100,000 people died last year due to the distribution of these dangerous and highly addictive POISONS. Millions of people have died over the last two decades. The families of the victims are devastated and, in many instances, virtually destroyed. We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled. China will likewise be charged an additional 10% Tariff on that date. The April Second Reciprocal Tariff date will remain in full force and effect. Thank you for your attention to this matter. GOD BLESS AMERICA!”
In the lead-up to Trump’s potential return to the White House, reports have surfaced about U.S. companies preparing to shift production away from foreign countries like China in anticipation of stricter trade policies. On February 19, Trump suggested that a trade deal with Beijing was still “possible.”
