
Remember when the “experts” claimed tariffs would devastate the American economy? Those same financial gurus who predicted economic doom have gone suspiciously quiet lately. Funny how that works.
Companies around the world are scrambling to adjust their business models. The global chess board has been flipped.
Manufacturing decisions that once seemed set in stone are suddenly up for reconsideration. And American workers stand to benefit.
One of Japan’s largest automakers just made a major production decision that has economic analysts buzzing. Honda Motor Co. will move production of its next-generation Civic hybrid from Mexico to Indiana, according to a recent report from Reuters.
This shift represents a direct response to President Trump’s proposed 25% tariffs on goods imported from Mexico and Canada.
From ‘Breitbart News’:
Fans of Honda cars, prepare to start your engines. The Japanese manufacturing giant will produce its next-generation Civic hybrid in the U.S. state of Indiana rather than Mexico to side-step tariffs on one of its top-selling car models, a report Monday claims…
“The change underscores how manufacturers are scrambling to adapt to U.S. President Donald Trump’s proposed 25% tariffs on goods from Mexico and Canada. While several automakers have expressed concerns about the levies, Honda’s move is the first concrete measure by a major Japanese car company.”
The Japanese automaker had initially planned to manufacture the next-generation Civic in Guanajuato, Mexico. Production was slated to start in November 2027. But Trump’s tariff policies changed that calculation dramatically.
Now Honda plans to build the new Civic model in Indiana starting May 2028, with an expected annual production of around 210,000 vehicles.
Honda’s decision isn’t happening in isolation. Apple recently announced plans to invest $500 billion in the U.S. over the next four years and hire 20,000 new workers, seeking relief from Trump’s tariffs on goods imported from China.
The Writing on the Wall
Honda isn’t the first company to bring production back to American soil. The Greensburg, Indiana plant has been producing vehicles since 2008. It currently employs 2,700 workers who manufacture the Civic Hatchback, CR-V, and Insight Hybrid.
This latest decision represents something bigger. It’s a direct acknowledgment that Trump’s economic policies are changing the global manufacturing landscape.
When a major Japanese automaker shifts production to avoid tariffs, it signals that America First isn’t just campaign rhetoric – it’s economic reality.
Jobs, Jobs, Jobs
For Indiana residents, Honda’s decision means real opportunities. The 1.3 million-square-foot plant in Greensburg will likely see increased activity and potential job growth.
Each manufacturing job typically creates multiple supporting jobs in the surrounding community.
The Civic isn’t some niche product, either. Honda sold more than 240,000 Civics last year, making it the company’s second-best seller in the U.S. market after the CR-V. Sales of the affordable compact car rose 21 percent year-on-year last year, according to company data.
This production shift means thousands of vehicles that would have been built in Mexico will now be made by American workers. That translates to American paychecks, American tax revenue, and American economic growth.
America First, Not Just a Slogan
Honda executives aren’t making this move out of patriotism. They’re making a cold business calculation. During a February analyst call, Honda COO Shinji Aoyama warned that a 25% tariff would have a “$20 billion plus impact” on the company.
“I don’t think it is very difficult to address that situation of the tariff for those two materials,” Aoyama said of the aluminum and steel duties. But the duties on Canada and Mexico could create a “difficult situation” for Honda if they remain intact for multiple years.
About 40 percent of the vehicles Honda sells in the U.S. are currently imported from Mexico and Canada. That’s a massive exposure to tariffs. By shifting production to Indiana, Honda protects its bottom line while creating American jobs – exactly what Trump’s policies were designed to do.
Honda isn’t alone in this calculation. Major manufacturers across industries are rethinking their global production strategies.
The message is clear: if you want access to American consumers, you’d better be prepared to employ American workers.
Key Takeaways:
- Honda will move its Civic production from Mexico to Indiana, to avoid Trump’s tariffs.
- The move will result in approximately 210,000 vehicles annually being made by American workers
- This is a move marks a new trend of companies moving back to America.
Sources: Breitbart, Daily Journal, Quartz