TMTPOST -- Honda has decided to manufacture its next-generation Civic hybrid in Indiana, rather than Mexico, in order to bypass potential tariffs on one of its best-selling car models, according to sources familiar with the decision. This move highlights how manufacturers are quickly adjusting to U.S. President Donald Trump’s proposed 25% tariffs on imports from Mexico and Canada. While several automakers have expressed concerns over the tariffs, Honda's decision marks the first significant response from a major Japanese automaker. Initially, Honda planned to produce the new Civic in Guanajuato, Mexico, with production scheduled to begin in November 2027, according to the sources. Mexico was chosen for its lower production costs, as rising expenses were making manufacturing in Indiana and Canada more challenging. Now, Honda intends to begin production in Indiana in May 2028, with an estimated annual output of around 210,000 vehicles. If demand exceeds Indiana's production capacity, Honda may explore importing vehicles from countries not subject to the tariffs, the sources added.