Honda says it will move Civic Hybrid production from Japan to the US

Automaker Honda announced Wednesday that it will move production of its Civic hybrid model from Japan to the United States in June or July, though it refrained from citing U.S. tariffs as the reason.

The reason for the decision "is not an isolated issue," a spokesman for the Japanese firm said. "The decision is based on the company's policy since its founding that we produce cars where the demand is," he added.

Production of the model will be added at the company’s plant in Indiana. The Civic hybrid, previously produced at the Saitama plant north of Tokyo, will now be assembled on U.S. soil.

The announcement implies that the Civic Type R, the sporty version of the model, will be the only vehicle Honda continues to export from Japan to the United States.

The rest of the lineup is already manufactured at plants located in the U.S., Canada and Mexico

The rest of the range is already produced in plants in the U.S., Canada, and Mexico, minimizing the impact of tariffs, as less than 1% of its U.S. sales come from vehicles assembled outside Asia.

Honda has maintained a strong presence in the North American market for decades, a fact reflected in its financials. The automaker’s exports make up about 30% of Japan’s total product sales to the U.S.

The decision comes after the implementation of an additional 25% duty on auto imports, enacted earlier this month by Trump, prompting major manufacturers to reconsider the location of their supply chains.

Other companies in the auto sector also announce changes

Honda is not the only Japanese automaker affected by recent U.S. economic decisions. Companies like Nissan, which is already considering moving part of the production of its Rogue SUV from Japan to North America, are planning similar actions.

Mitsubishi has temporarily suspended deliveries of its vehicles to U.S. ports.