Honda Motor Co (TYO:7267) plans to relocate vehicle production from Mexico and Canada to the US following the Trump administration's 25% tariff on imported automobiles, according to Nikkei Asia report on Tuesday.
The automaker aims to boost US production by up to 30% within two to three years, allowing locally made cars to cover 90% of its U.S. sales, said the report.
The United States-Mexico-Canada Agreement (USMCA) had enabled tariff-free auto trade among the three nations if certain conditions were met, added the news portal.
Japanese automakers, including Honda, previously leveraged the pact to export vehicles from lower-cost production hubs in Mexico and Canada to the US, it said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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