Honda Motor Company confirmed this week it will transfer some vehicle production from Japan to the US this year in response to the US government’s recent 25% hike in tariffs on vehicles imported into the country.

The Japanese automaker said it plans to shift production of the Civic Hybrid for sale in the US from its plant in Saitama Prefecture in central Japan to its facility in the US state of Indiana by July 2025, as it looks to mitigate the impact of the US tariff hike.

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Production of the new-generation, five-door Civic hybrid model began at the Saitama plant in February. Reports last month, citing a company insider, suggested that Honda had already decided to produce the Civic Hybrid in the US instead of Mexico from 2027, despite the significant advantages Mexico offers in terms of production costs. These plans now appear to have been brought forward, with US production of the model set to begin in the second half of 2025.

The company said it “judged it appropriate to move the output of the model to the US considering Civic's high popularity there.” The Civic is a key model for Honda in the US, with almost 59,000 sales in the first quarter of 2025. Combined sales of the Honda and Acura brands in the country rose by over 5% to 351,577 units in the three-month period.

Nissan Motor recently decided to shift US-designated production of its popular Rogue SUV from Japan to the US in response to the new US import duties, while Mitsubishi Motors has also suspended vehicles exports to the US.

Manufacturers and their importers in the US are subject to varying levels of exposure to 25% import tariffs on finished vehicles, depending on their mix of imports and US-sourced sales. GlobalData analysis (below chart) shows that Tesla is unique in having 100% US-sourced sales in the US. However, analysts point out that Tesla is potentially exposed to tariffs on imported components for its US manufacturing operations.

Navigate the shifting tariff landscape with real-time data and market-leading analysis. Request a free demo for GlobalData’s Strategic Intelligence here.