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.

Honda had originally planned to build the next-generation Civic in Mexico, beginning in November 2027, but will instead produce the car in Indiana beginning in May 2028.

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

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.

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,