President Donald Trump’s proposed tariffs on Mexico appear to have affected 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, according to three sources cited by Reuters. Mexico is facing a 25% tariff that is slated to begin on Tuesday after a weekslong delay. This comes amid a yearslong border crisis that included immigrants illegally crossing the border and an increase of fentanyl discovered among states sharing borders with Mexico.
Mexico responded to the tariffs with retaliatory tariffs while also complying with Trump’s orders by sending over 10,000 troops to the border.
Fellow Japanese automaker Nissan stopped negotiations on a merger earlier this month but committed to continuing collaboration.