KEY TAKEAWAYS Honda plans to produce its next Civic hybrid in Indiana rather than Mexico to avoid the impact of possible upcoming tariffs, according to a Reuters report,.According to the report, around 80% of Honda’s production in Mexico goes to the U.

According to a new report from Reuters, Indiana could see an increase in auto production in the future. The news agency reports that Honda has decided to produce its newest Civic Hybrid in the Hoosier state. Reuters says the company is shifting production from Mexico to avoid potential tariffs.

Honda has decided to produce its next-generation Civic hybrid in the U.S. state of Indiana, instead of Mexico, to avoid potential tariffs on one of its top-selling car models, according to three people familiar with the matter. Ciara Lee reports

During his address to Congress on Tuesday night, President Trump said Honda had plans for a new plant in Indiana, but the company clarified it has made no such announcement.

Reuters reported, ahead of the 25 percent tariff implemented by the Trump administration on products from Mexico and Canada, that Honda will build the next-generation Civic in Indiana, instead of Guanajuato,

After shifting Civic production to Mexico, Honda is doing an about-face, reportedly bringing the popular model line back to Indiana. The move, unsurprisingly, comes after President Trump threatened a 25 percent tariff on goods manufactured south of the border.