Honda had planned to build the next-generation Civic in Mexico starting in November 2027 as a 2028 model, but news of the 25 percent tariff proposed by President Trump’s administration was the impetus behind the change in manufacturing location.

Honda will reportedly manufacture the next-generation Civic in Indiana. That’s a change of plans for the company, which had been planning to manufacture the vehicle in Mexico. The move comes following Donald Trump’s levying of 25% tariffs on goods from Mexico and Canada.

A new report shows changing production plans as Honda looks to avoid impending tariffs on the hugely popular Civic and Civic Hybrid.

Honda will not be building its next-generation Civic hybrid in Mexico as originally planned due to tariffs threatened by U.S. President Trump.

Honda might move the production of the next-generation Civic to its facility in Greensburg, Indiana, following Trump administration's tariffs proposal

While several automakers have expressed concerns about the levies, Honda's move is the first concrete measure by a major Japanese car company.

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Honda’s chief executive, Shinji Aoyama, says the tariffs could have a ‘$20 billion plus’ impact on the company.

Honda has reportedly decided to make its next Civic hybrid in the US rather than Mexico, according to a Reuters report. The news agency – citing anonymous sources – said the move to make the model in the US would avoid potential tariffs on one of its top-selling car models.

The president may have been referencing earlier reports that the Japanese automaker was planning to move some production from Mexico to Indiana in response to impending tariffs.

Honda Motor plans to produce its next Civic hybrid in Indiana rather than Mexico to avoid the impact of upcoming tariffs, according to a Reuters report.