Honda plans to increase car production in the US amid tariffs

Japanese automaker Honda plans to increase production in the United States to mitigate the impact of higher tariffs. This was announced during a conference call by the company’s CFO Eiji Fujimura, Argus Media reports.

The company is also trying to prepare for possible sustainable trade shifts if the current tariff structure becomes the new normal.

Eiji Fujimura explained that Honda is looking to increase production at its U.S. assets by improving productivity, including by considering increasing daily work shifts. He added that this strategy will allow the company to increase production with minimal additional investment.

It will also have to source more key components, such as battery materials, locally.

The company has not yet disclosed details about its new production targets in the United States. However, it notes that consultations with component suppliers will be required before finalizing them.

Honda’s operating profit in the first quarter of fiscal year 2025/2026 (April-June) fell by almost 50% year-on-year to ¥244 billion ($1.7 billion).

In July, Tokyo and Washington reached a trade agreement under which U.S. tariffs on Japanese vehicles and parts will be reduced from 25% to 15%. Duties on steel and aluminum imports are not part of the agreement.