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.

President Donald Trump’s proposed tariffs on Mexico appear to have impacted Honda‘s plans for its new Civic hybrid vehicles. The automaker is reportedly preparing to move production of its electric Civic model from Mexico to Indiana,

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

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

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

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

During his address to Congress Tuesday night, President Donald Trump mentioned that he expects the United States to see growth in the auto industry. He specifically mentioned Honda moving production to Indiana as an example.

Honda’s flexible manufacturing capabilities are moving into its next generation as well. Though the automaker is prepping for EV production, the remodeling and retooling underway at its Marysville and East Liberty auto plants and the Anna Engine Plant will allow it to build gas, hybrid and electric vehicles all on the same lines.

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.