Honda Links New Plant to Continuation of USMCA

A senior Honda executive warned that the Japanese automaker will scrap plans for an eighth assembly plant in North America unless the USMCA—the trade agreement that the Trump administration is currently renegotiating with Canada and Mexico—is extended.

This was stated by Honda’s global executive vice president, Noriya Kaihara, during a roundtable discussion in Washington, according to a Reuters report.

Kaihara echoed the words of CEO Toshihiro Mibe, who said days earlier that Honda has already reached its maximum production capacity to meet regional demand, and is therefore considering the possibility of building a new plant in the United States.

However, “if a USMCA agreement is not reached in the future, we may have to change course,” Kaihara said, adding that the company will need to make a decision within one or two years so that the plant can be operational by 2030.

He added that, for the time being, Honda is not passing on tariff costs to consumers in North America.