MxM News

Quick Hit:

Honda will produce its next-generation Civic in Indiana instead of Mexico, a strategic shift aimed at sidestepping potential tariffs imposed by President Donald Trump’s administration. The decision underscores the growing impact of the proposed 25% tariffs on automakers and global supply chains.

Key Details:

• Honda plans to build the next Civic model in Indiana, with production set to begin in May 2028, instead of the previously planned November 2027 start in Mexico.
• The Indiana plant is expected to produce around 210,000 Civics annually, according to sources familiar with the decision.
• Honda had initially planned to manufacture the vehicle in Guanajuato, Mexico, but rising costs and potential tariffs forced a strategic reassessment.

Diving Deeper:

Honda’s move signals a major shift in automotive manufacturing, as the Japanese automaker responds to potential 25% tariffs on imports from Mexico and Canada. The Trump administration’s proposed tariffs are aimed at bolstering U.S. manufacturing, a policy that has already prompted concerns and adjustments from global car companies.

Sources told Reuters that Honda had originally selected Mexico due to lower production costs. However, with the possibility of hefty tariffs disrupting supply chains, the company recalibrated its plans, opting for production in Indiana to ensure continued market stability in the United States, where it sold over 1.4 million vehicles last year.

Although Honda has not officially confirmed the decision, a company spokesperson emphasized that Honda is always evaluating its global production strategy based on market conditions. Given that approximately 40% of the vehicles Honda sells in the U.S. are imported from Mexico and Canada, this shift may be just the first of many adjustments the automaker makes to mitigate potential cost increases.

The Civic remains a crucial model for Honda, with U.S. sales jumping 21% last year. The decision to manufacture the next-generation model domestically reflects the broader industry trend of automakers reevaluating their supply chains in light of shifting trade policies.

 Dan McTeague

Well, we are in quite the pickle.

In nine plus years as prime minister, Justin Trudeau has waged a multi-front war on the consumption and production of hydrocarbon energy, and, with that, on our economy, our quality of life, and our cost of living.

Trudeau zealously pursued and implemented anti-energy policies, most infamously the consumer Carbon Tax, but let’s not forget his so-called ”Clean Fuel” regulations; his Industrial Carbon Tax; his proposed emissions caps; his Electric Vehicle subsidies and mandates; Bill C-59, which bans businesses from touting the environmental positives of their work if it doesn’t meet a government-approved standard; and various other pieces of legislation which make the construction of new pipelines nearly impossible and significantly reduces our ability to sell our oil and gas overseas.

Every one of these policies can be traced back to the pernicious Net Zero ideology which informs them, and in which Trudeau and his bosom buddies — Gerald Butts, Steven Guilbeault, Mark Carney, etc — remain true believers.

And yet, despite those policies contributing to his party’s collapsing poll numbers and Trudeau’s unceremonious ouster, the Liberals are on the verge of naming as his replacement Mark Carney, one of the very Trudeau consiglieri who got us into this mess in the first place!

Now, Carney is currently doing everything in his power to downplay and dance around those aspects of his career which voters might find objectionable. He’s making quite a habit of it, in fact. And on the energy file, he’s being especially misleading, walking back his long-time support of the Carbon Tax — he’s said it has “served a purpose up until now” — and claiming that he intends to repeal it, while finding other ways to “make polluters pay.”

This is nonsense. In fact, Carney is a Carbon Tax superfan, and, if you listen to him closely, his actual critique of the Trudeau tax isn’t that it has made it more expensive to heat our homes, gas up our cars, and pay for our groceries (which it has.) It’s that it is too visible to voters. His vow to “make polluters pay” means, in fact, that he intends to “beef up” Trudeau’s less discussed Industrial Carbon Tax, targeting businesses, which will ultimately pass the cost down to consumers.

He’s even discussed enacting a Carbon tariff, which would apply to trade with countries which don’t adopt the onerous Net Zero policies which he wants to force on Canada.

That’s just who Mark Carney is.

And, unfortunately, Donald Trump’s tariff threats have provoked a “rally round the flag” sentiment, enabling the Liberals to close the polling gap with the Conservatives, with some polls currently showing them neck-and-neck. Which is to say, there is a possibility that, whenever we get around to having an election, anti-American animus could keep the Liberals in power, and propel Carney to the top job in our government.

This is, in a word, madness.

Let us not forget that it was the Liberals’ policies — especially their assault on our “golden goose,” the natural resource sector — which left us in such a precarious fiscal state that Trudeau felt the need to fly to Mar-a-Lago and tell the newly elected president that a tariff would “kill” our economy. That’s what provoked Trump’s “51st state” crack in the first place.

Access to U.S. markets will always be important for Canadian prosperity — they, by leaps and bounds, are our largest trading partner, after all — but without the Net Zero nonsense, we could have been an energy superpower, providing an alternative source of oil and natural gas for those countries leary about relying for energy on less-environmentally conscious, human-rights-abusing petrostates. We could have filled the void created by Russia, when they made themselves a pariah state in Europe by invading Ukraine.

In short, we might have been set up to negotiate with the Trump Administration from a position of strength. Instead, we’re proposing to double-down on Net Zero, pledging allegiance to a program which will make us less competitive and more likely to be steamrolled by major powers, including the U.S. but also (and less frequently mentioned) China.

Talk about cutting off your nose to spite your face! And all in the name of nationalism.

Here’s hoping we wise up and change course while there’s still time. Because, in the words of America’s greatest philosopher, Yogi Berra, “It’s getting late early.”

Dan McTeague is President of Canadians for Affordable Energy.

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