President Trump’s tough trade policies are already delivering results, with major companies shifting their manufacturing operations back to the United States. Over the weekend, Honda announced that it will build its next generation of Civic hybrids at its Indiana plant—instead of in Mexico—in response to Trump’s looming 25% tariff on Mexican imports.
The move is a direct result of Trump’s strategy to pressure Mexico into strengthening its efforts to curb illegal immigration and fentanyl trafficking. Unless Mexican President Claudia Sheinbaum takes stronger action, the tariffs are set to take effect by midnight Tuesday.
Honda had initially planned to produce the new Civic hybrids in Guadalajara starting in 2027, but with Trump’s tariffs all but certain, the company reversed course. The Civics will now almost certainly be built in Greensburg, Indiana, home to Honda’s only manufacturing facility in the state.
Honda has not issued an official statement on the decision, but sources familiar with the matter told Reuters that auto manufacturers had been reconsidering Mexico-based production ever since it became clear that Trump was serious about his tariffs. A base model 2025 Honda Civic currently starts at $24,250, meaning the tariff would push the price above $30,000 before any add-ons—making U.S.-based production the smarter financial move.
Trump, however, remains unimpressed with Mexico’s response. Sheinbaum recently deployed 10,000 additional troops to the U.S. border, but Kevin Hassett, director of the White House National Economic Council, said that the progress was “not as impressive as the president had hoped.” He also made it clear that if Mexico or Canada retaliate with tariffs on American goods, the U.S. will respond with even stronger measures.
For Honda, the decision to shift production back to the U.S. reflects the new reality under Trump: American jobs come first. Honda’s Chief Operating Officer Shinji Aoyama admitted that the original choice of Mexico was due to lower labor costs, but with the new tariffs, Indiana has become the more competitive option.
Honda’s shift is just one of many major investments being made in the U.S. under Trump’s leadership. Apple recently announced plans for a 25,000-square-foot AI facility in Houston, part of a $500 billion domestic investment. Meanwhile, SoftBank CEO Masayoshi Son has committed to creating 100,000 new American jobs in artificial intelligence by the end of Trump’s second term.
From manufacturing to tech, Trump’s economic policies are proving that “Made in America” is back in business.
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