Honda has decided to produce its next-generation Civic hybrid in the U.S. state of Indiana, instead of Mexico, to avoid potential tariffs on one of its top-selling car models, according to three people familiar with the matter.

Honda will move production of its electric Civic model to Indiana ahead of President Trump's tariffs on Mexico.

Civic hybrids will be built in Indiana instead of Mexico to avoid new tariffs, and Tesla's planning to put its latest battery factory in Katy, Texas.

The president may have been referencing earlier reports that the Japanese automaker was planning to move some production from Mexico to Indiana in response to impending tariffs.

Honda will reportedly move production of its next Civic hybrid car to Indiana due to possible tariffs against Mexico. That's according to Reuters which cited people familiar with the matter. The carmaker had been set to produce the cars in Mexico.

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 might move the production of the next-generation Civic to its facility in Greensburg, Indiana, following Trump administration's tariffs proposal

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

Honda’s chief executive, Shinji Aoyama, says the tariffs could have a ‘$20 billion plus’ impact on the company.