Trump’s New Tariffs Prompt Major Automaker to Shift Production to Indiana

Jim Banks (R-Ind.) praised Honda’s decision to produce its Honda Civic in Indiana rather than Mexico.

Reuters reports that the move was triggered because of President Donald Trump’s 25% tariffs against Mexico. These are due to take effect after a one-month pause following a temporary deal with Mexico.

It was reported by the outlet that the production of over 200,000 cars is expected to begin in 2028, however, the announcement from the company has not yet been made public.

“President Trump has taken the ‘kick me’ sign off the backs of our workers and manufacturers. This report is great news for Hoosiers and all Americans—and it’s only just the beginning,” Banks said

The senator said that “the America First agenda will be scoring countless victories over the next four-year period.”

According to the company’s website, the report should be good news for its Greensburg plant in Indiana. The facility has more than 3,000 workers and was opened in 2008. According to United States Census Bureau 2023 data, Greenburg has just under 12,000 residents. WISH-TV said that Honda has only one factory in Indiana at the moment.

The White House rapid response account posted on Monday that the “TRUMP EFFECT” is a real thing.

Trump’s policies regarding tariffs on Mexico, Canada, and China have made headlines in the past few weeks. Proponents say it is a crucial step to boost American manufacturing, while opponents fear it will increase prices unnecessarily. On April 2, the president announced reciprocal tariffs across the world.

“To the Great Farmers of the United States: Get ready to start making a lot of agricultural product to be sold INSIDE of the United States. Tariffs will go on external products on April 2nd. Have fun!” Trump said on Truth Social on Monday.

Banks recently applauded the reciprocal tariffs and said that they would likely be beneficial to the United States.

Banks, in a tweet on February 13, said: “The globalist trade approach has put our workers at the mercy of their competitors from abroad. President Trump’s America First Trade Plan corrects the injustices that have plagued our workers and industries for years. The reciprocal tariffs that were announced today bring fairness and prosperity and will stop Americans from being exploited.”

Honda isn’t the only automaker that has re-examined its tariff policy. Last month, Nissan’s CEO said that some production may be moved out of Mexico in order to adapt the new policies. He did not specify if this would take place in the U.S.