On Monday, The Daily Caller reported that Honda will be moving some of its manufacturing from Mexico to Indiana as a result of President Trump’s tariff plans for Mexico,
The article reports:
Honda intends to move production of one of its best-selling car models to the U.S. from Mexico in an attempt to avoid potential tariffs, Reuters reported on Monday.
The major automaker decided to shift production of its next-generation Civic hybrid car to Indiana, three anonymous sources told Reuters. The news comes after President Donald Trump on Feb. 1 imposed 25% tariffs on imports from Canada and Mexico alongside 10% tariffs on imported goods from China in an attempt to stop deadly drugs and illegal migrants coming into the U.S. from the countries.
The article concludes:
Ahead of Trump’s recent return to the White House, there were a growing number of reports of U.S.-based companies gearing up to shift their production out of foreign countries such as China in anticipation of the incoming Trump administration implementing new tariffs. Notably, Trump signaled on Feb. 19 that reaching a trade deal with Beijing was “possible.”
A spokesperson for Honda did not immediately respond to a request for comment from the Daily Caller News Foundation.
There are other reasons for moving manufacturing back to the U.S. under the Trump Presidency. President Trump has shown in the past that he wants to reduce regulations and increase energy production. Less regulation and cheaper (and stable) energy attract manufacturing. Also, the corporate tax under President Trump (if Congress cooperates) will remain low. In the last Trump administration, many corporations brought their manufacturing back to America. If the Trump administration policies are put in place, that will happen again.