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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 was initally planning to move production of the next-generation hybrid Civic from its current facilities in Indiana and Ontario, Canada, as a result of cheaper labor in Mexico. Its Indiana facility has been building the Civic hatchback since 2021,

Honda might move the production of the next-generation Civic to its facility in Greensburg, Indiana, following Trump administration's tariffs proposal

Japanese automaker Honda has made no announcements regarding planned investment in or construction of manufacturing facilities in Indiana, according to a company spokesperson, despite reports and comments made by President Donald Trump this week.

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,

After shifting Civic production to Mexico, Honda is doing an about-face, reportedly bringing the popular model line back to Indiana. The move, unsurprisingly, comes after President Trump threatened a 25 percent tariff on goods manufactured south of the border.