Honda (NYSE:HMC) is considering switching some car production from Mexico and Canada to the United States, aiming for 90% of cars sold in the country to be made locally in response to new U.S. auto tariffs, the Nikkei newspaper reported on Tuesday.

Japan’s second-biggest automaker by sales plans to increase U.S. vehicle production by as much as 30% over two to three years in response to U.S. President Donald Trump’s decision to put a 25% levy on imported vehicles, Nikkei said.

Honda declined to comment, saying the information was not announced by the company.

© Reuters. FILE PHOTO: The Honda logo is displayed, at the 46th Bangkok International Motor Show in Bangkok, Thailand, March 24, 2025. REUTERS/Chalinee Thirasupa/File Photo

In the weeks leading up to the new U.S. levy, Reuters had already reported that Honda plans to make its next-generation Civic hybrid in the U.S. state of Indiana, instead of Mexico, to avoid potential tariffs.

The U.S. was Honda’s biggest market last year, accounting for nearly 40% of global sales. The automaker sold 1.4 million vehicles in the U.S. last year.

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