Honda is making a big move. It’s shifting production of its Civic hybrid from Mexico to Indiana. The goal? Avoid tariffs.
Three anonymous sources told Reuters about the decision. It comes after President Trump imposed 25% tariffs on imports from Mexico and Canada. He also hit China with 10% tariffsin hopes of stopping illegal drugs and immigration.
The White House backed the move. They said Trump is holding Mexico, Canada, and China accountable. The focus is on stopping fentanyl and other drugs from entering the U.S.
Trump later agreed to pause the new tariffs. Mexico promised to send troops to the border. Canada’s Prime Minister Justin Trudeau also pledged to secure the northern border.
But Trump isn’t satisfied. He wrote on Truth Social that drugs are still pouring in. “Unacceptable levels,” he called it. So, on March 4, the 25% tariffs on Canada and Mexico will return.
He’s also doubling China’s tariffs that same day. “A large percentage of these Drugs, much of them in the form of Fentanyl, are made in, and supplied by, China,” Trump wrote. He said over 100,000 people died last year from these “dangerous and highly addictive POISONS.”
Trump made it clear. Until the drug crisis stops or is seriously reduced, tariffs will remain. He also reaffirmed that the April 2 Reciprocal Tariff will stay in place.
Companies saw this coming. Even before Trump’s return to the White House, U.S. businesses were preparing. Many planned to move production out of China, expecting new tariffs. Trump even hinted on Feb. 19 that a trade deal with Beijing was “possible.”