Honda announced Monday that it will produce its new Civic model in Indiana instead of Mexico, as originally planned, likely due to President Donald Trump’s 25% tariff on the country.
Manufacturing in Indiana will likely start in late 2027, and Honda expects to produce more than 200,000 vehicles per year in the state.
For a region that has lost manufacturing jobs in the past decades, this move is a major win. If Trump can continue this trend, he will have a chance to revitalize the Rust Belt.
“President Trump has taken the ‘kick me’ sign off the backs of our workers and manufacturers,” Sen. Jim Banks (R-IN) said in a statement to Fox News Digital. “This report is great news for Hoosiers and all Americans—and it’s only just the beginning. The America First agenda is going to be racking up countless wins over the next four years.”
Trump’s actions and results reflect former President Calvin Coolidge’s view on protectionist tariffs.
“My observation of protection is that it has been successful in practice, however unsound it may be in theory,” Coolidge said.
Despite doubts regarding tariffs, Trump has been able to use them successfully so far, first as a negotiation tactic with Canada, Colombia, and Mexico and now as a way of boosting the American economy.
Trump expressed optimism that Honda’s new jobs are only the beginning.
“We have many other companies. It’s going to be announced, but we have many that have already announced,” Trump said. “I don’t think this country has ever seen anything like we’re seeing right now.”
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The long-lasting effects are yet to be seen, as the Dow Jones Industrial Average has dropped over 900 points since Monday morning. Even those numbers seem to be recovering, as the DOW has gained back some of the losses after hitting its low on Tuesday morning. Much of the drops could be attributed to reactions to Trump’s meeting with Ukrainian President Volodymyr Zelensky rather than his tariff policy.
Mexico and Canada have vowed to retaliate with tariffs of their own. While Trump should be careful not to escalate a trade war, the initial effect of the tariffs has been positive.