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.

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.

Tariffs on most goods from Canada and Mexico are slated to come into effect on March 4, and it sounds like Honda is already taking action to ensure one of its most popular models won't be affected. Although the automaker was reportedly planning on relocating production of the next-generation Civic to Guanajuato,

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 Co. (HMC) will make its next-generation Civic hybrid in Indiana, not Mexico, to dodge planned U.S. tariffs on foreign imports.

During his address to Congress on Tuesday night, President Trump said Honda had plans for a new plant in Indiana, but the company clarified it has made no such announcement.

Reuters reported, ahead of the 25 percent tariff implemented by the Trump administration on products from Mexico and Canada, that Honda will build the next-generation Civic in Indiana, instead of Guanajuato,