Honda had planned to build the next-generation Civic in Mexico starting in November 2027 as a 2028 model, but news of the 25 percent tariff proposed by President Trump’s administration was the impetus behind the change in manufacturing location.

Honda will reportedly manufacture the next-generation Civic in Indiana. That’s a change of plans for the company, which had been planning to manufacture the vehicle in Mexico. The move comes following Donald Trump’s levying of 25% tariffs on goods from Mexico and Canada.

Honda will not be building its next-generation Civic hybrid in Mexico as originally planned due to tariffs threatened by U.S. President Trump.