Honda is studying the transfer of production of some of its cars from Mexico and Canada to the United States, aiming to manufacture 90 percent of the cars sold in the country locally in response to the new U.S. tariffs on cars.
According to Nikkei, Japan's second-largest automaker by sales plans to increase U.S. car production by up to 30 percent over the next two to three years in response to U.S. President Donald Trump's decision to impose a 25 percent tax on imported cars.
According to Nikkei, the company will move the production of the CR-V sports utility vehicle from Canada to the United States, and the production of the HR-V sports utility vehicle from Mexico to the world's largest economy.
The newspaper added that Honda is considering hiring more American workers to increase production, explaining that this move would enable Honda to shift to a three-shift system instead of a two-shift system, extending production to include weekends.
In contrast, the company stated that it has not disclosed this information.
In the weeks leading up to the implementation of the new U.S. tax, Reuters reported that Honda plans to manufacture the next generation of the Civic hybrid in Indiana, instead of Mexico, to avoid potential tariffs.
Honda's market in the United States
The United States was Honda's largest market last year, accounting for nearly 40 percent of global sales.
The automaker sold 1.4 million vehicles, including Acura models, in the United States last year, importing about a fifth of those cars from Canada or Mexico.
Honda recorded a 5 percent increase in its U.S. sales, reaching nearly 352,000 vehicles in the first three months of this year.
Canadian Federal Innovation Minister Anita Anand stated on social media platform X that Honda "reported that no such production decisions affecting Canadian operations have been made," adding that she will meet with the CEO of Honda Canada.